The Millennials are solution to a stronger housing recovery, a new study by the Harvard's Joint Center for Housing Studies suggests.
Researchers said that by 2025, the millennials could form 24 million new households. Burdened with education loan and falling incomes young Americans are continuing to live with their parents. According to statistics, around 2.1 million more adults in their 20s lived with their parents last year, and student loan balances increased by $114 billion.
Despite all this, researchers state that the number of homeowners in their 30s might increase by 2.7 million over the coming decade, which should boost demand for new housing. "Ultimately, the large millennial generation will make their presence felt in the owner-occupied market," said Daniel McCue, research manager of the Joint Center. "Just as they already have in the rental market, where demand is strong, rents are rising, construction is robust, and property values increased by double digits for the fourth consecutive year in 2013."
The homeownership rate for those below the age of 35 was 36 percent in the first three months of 2014, down from 43 percent in 2005, CNN reports citing Census.
According to the study, three main factors have been holding the millenials back. They are facing a weak job market and tight lending standards.
"When the job market recovers and their income recovers, they are going make their mark on this housing market," said Christopher Herbert, research director at the Harvard division.
Millenials might improve the overall housing market. "If somebody wants to move up from a starter house to a larger house, they need someone to sell the starter house to," said Mike Calhoun, the president of the Center for Responsible Lending.
