Many buyers are delaying a decision to purchase a home because of the volatility of the real estate market. There is no larger category exhibiting this behavior than those of Generation Y. To define this segment of the population, we go to Wikipedia:
Generation Y, also known as the Millennial Generation (or Millennials), Generation Next, Net Generation, or Echo Boomers, describes the demographic cohort following Generation X. There are no precise dates for when the Millennial generation starts and ends, and commentators have used birth dates ranging somewhere from the mid-1970s to the early 2000s.
Does this generation wish to own a home?
Yes. A recent survey completed by Trulia shows people between the ages of 18-34 still believe in the concept of home ownership. 65% of those surveyed said “their American Dream includes owning a home”.
Where are these adults living?
Recent research form John Burns Real Estate Consulting shows the number of adults living with their parents has dramatically increased over the past eight years. Below is a graph showing the numbers:
Generation Y believes in homeownership. Yet, they are delaying the decision to purchase a home of their own. When they do decide to buy, they will impact the housing market in a big way.