Millennials Will Dominate the Mortgage Market in 2020
Markets in the South and West will experience the highest housing activity in 2020, as more millennials move out of big cities in search of more affordable markets, according to experts who shared some of the latest industry trends during last week’s International Builders’ Show in Las Vegas.
“Millennials will dominate housing in 2020 and account for 50% of mortgage originations,” said George Ratiu, a senior economist at realtor.com. He added that they will be leaving expensive metros for more affordable markets.
“Millennials will be moving to mid-sized cities like Boise, Idaho; Tucson; Chattanooga, Tennessee; and Columbia, South Carolina. These cities offer good weather, suburban downtowns and lifestyle amenities.”
Looking at this key demographic more closely, Ratiu said:
- 1-in-4 millennials have been looking for a home for more than a year.
- 16% are searching for homes in urban areas.
- 34% are looking for homes in the suburbs.
- 45% are seeking homes in small towns and rural areas.
- Millennials will demand an affordable product.
- Mortgage rates will remain attractive.
- Lesser markets will shine.
- Baby boomers are not moving.