When it comes to forecasting Millennial housing trends, the generation is a riddle, wrapped in a mystery, inside an enigma. Just when housing experts think they have their housing and location preferences figured out, Millennials go a different direction.
Home purchases by Millennials stalled during the recession and the following years, but the generation is showing increased interest in the housing market. Millennials — aged 18 to 34 — were the largest share of home buyers in 2014 and are predicted to continue the trend for the next several years.
In fact, according to the 2015 National Association of Realtors Home Buyer and Seller Generational Trends study, Millennials made up 32% of all U.S. home buyers in 2014 (31% in 2013). The generation is slated to soon surpass Baby Boomers in total population.
In Utah, Millennials are more likely to buy a home than those of the same age group nationally, according to a new study from the Utah Foundation. About 41% of Utah Millennial households own their own home, a rate 11% ahead of the national average.
Utah’s Millennial homeownership rate is even higher for families. Married couples are 8% more likely to own a house, adding another 2% for every child they have. Millennials in the state are buying more homes probably because residents tend to “begin families at younger ages and [have] a cultural importance on home ownership,” according to the report.
The state has the second highest percentage of homeownership among millennial households, just behind Minnesota — in part due to more of them being married with children, according to the foundation. The report, which survey 1,300 Utahns in March, also noted Utah has the second-highest proportion of Millennials in the country.
The Utah Foundation added that U.S. Census data showed Utah renters spend about 35% of their income on rent, while the state’s homeowners pay about 23% on mortgages or other home costs.