Realtors notice a rise in millennial homebuyers
Buying a home is what many consider to be apart of the American dream, but for a while millennials weren't buying into it.
Now, however, realtors like Denise Everson, are noticing an increase in millennials buying homes.
"I just think everyone is finally at a point where they were able to save up a little bit of money and they're just ready to get out there on their own," she said.
According to the National Association of Realtors, 37.5 percent of millennials owned homes toward the end of 2019. This is an increase from 36.8 percent in 2018 and the largest share since 2011.
"They see purchasing a home a better investment than going out and renting," Everson said.
This is a decision many millennials are making based on comparing prices when it comes to renting versus owning a home.
"If you compare what the going rate for rent is around here versus a mortgage, because our interest rates are so good right now, you're monthly mortgage rate ends up being cheaper than what rent is," Everson said. "Then you're investing because your home value will continue to increase and in the mean time you're paying it down," she said.
"So at the end of five years opposed to paying rent for the course of five years and having nothing to show for it, you're building equity in your home and you sell it and you've got money back in your pocket again."
Even after comparing the two options, Everson says it's always best to figure out what works best for you.
"It's always good to go to the lender first and get prequalified so they know how much they qualify for," she said.
Although millennials are purchasing more homes, the Millennial Homeownership report from Urban said they still aren't buying homes at the same rate as Generation X and Baby Boomers were when they were the same age.