Millennials are afraid of buying houses, right?
Some of them are afraid of another housing collapse, right? Millennials don't want the housing lifestyle, and a lot of them won't marry, right?
But the entire demographic will still be a material factor in driving a potentially strong housing market for the next several years. And the way that will happen is all about sheer numbers.
Millennials are a huge demographic, so even if a lower portion of them relative to other demographics buy homes, the sheer number of them will support the demand side of the equation, said Tendayi Kapfidze, chief economist at LendingTree. "The millennial generation is the largest generation in U.S. history," Kapfidze said. "The average millennial age is right around 29, and that's kind of the age where people start to get into home buying."
Here's the kicker:
"I think there's enough demand going forward to underpin the housing market for several years to come," Kapfidze said. "The demand for housing is going to be strong given the size of the millennial generation."
He mentioned that while Millennials have been slow to get married and have families, as the group potentially begins that process at a later point in time, the housing market will then see another layer of demand support.
For the next few years, "I think it's going to be pretty robust," Kapfidze said.
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