It may be hard to believe right now, but many more Millennials are expected to trade in their parents’ basements and run-down apartments for a place of their own.
The homeownership rate for adults between the ages of 25 and 34 is expected to rise from less than 40 percent in 2016 to possibly as high as 60 percent by 2025, according to recently released statistics from Freddie Mac.
The financial crisis coupled with high rent and home prices has killed homeownership rates among young adults in the 21st century. Between 2000 and 2016, 700,000 young adults did not buy a home, according to Freddie Mac.
“Demographics, housing preferences and economic conditions will all play a role in the direction of homeownership in coming years,” Sam Khater, Freddie Mac’s chief economist, said in a statement. “If economic conditions improve, and incomes and entry-level housing supply increase in a meaningful way, homeownership rates for today and tomorrow’s young adults could exceed our current projections.”
Additional data from Freddie Mac shows that people who are self-employed are 5 percent more likely to become a homeowner than those who work for an employer; living in a multigenerational household also results in being 5 percent more likely to become a homeowner.
However, living in a metropolitan statistical area where employment opportunities and amenities are abound results in a 5 percent less chance of becoming a homeowner versus those living outside metro areas.
Foreign-born people are also 11 percent less likely to become a homeowner, although the effect fades away as the number of years they live in the U.S. increases.