Recent surveys have revealed that the millennial generation, currently between the ages of 18 and 34, are living with their parents much more than the previous generation at this stage of their lives. In California, for example, upwards of 40% of millennials are living at home.
We pointed out recently, the millennial generation rents the most and makes up 27.3 percent of all renter households in 2012. The second fastest-growing group of renters, people ages 35 to 44 make up 21.5 percent of all renters. We concluded that if these people ever decide to buy houses instead of renting, Maryland could experience another housing boom.
Now Kenneth R. Harney of the Washington Post on January 30 reported “Statistical measures and anecdotal reports suggest that young couples and singles in their late 20s and early 30s have begun making a belated entry into the home-buying market, pushed by mortgage rates in the mid-3-percent range, government efforts to ease credit requirements and deep frustrations at having to pay rising rents without creating equity.”
Last month Hadley Malcolm at USA today wrote, “With rents rising into unaffordable territory, housing inventory up and mortgage rates hovering below 4%, 2015 may prove to be the year of homeownership for millions of Millennials. Real estate website Zillow predicts Millennials will overcome Gen X as the largest group of home buyers this year — more than half of 18- to 34-year-olds said they plan to buy a house in the next one to five years, according to a survey by Zillow last summer.”
One of the biggest points in favor of rent vs buy debate is No down payment needed to rent. Now we have a number of banks that are moving toward zero down payments. Banks like to have the homeowner put some skin in the game, 10% to 25% is usual, but
- Veterans Affairs (formerly the Veterans Administration) guarantees no-down purchase mortgages for qualified veterans.
- Navy Federal Credit Union, the nation’s largest in assets and membership, offers 100 percent financing to qualified members for buying primary homes.
- The Department of Agriculture’s no-down payment Rural Development mortgage guarantee program is so popular that it has been known to run out of money before the end of the fiscal year.
- The Federal Housing Administration insures loans with small down payments. And private mortgage insurers have lowered their down payment requirements.
Trusted Homebuyers being one of the biggest investors in Maryland, we make money by volume not on any one property, which allows us to pay the absolute most for properties. Trusted Homebuyers is one of the leaders of a nationwide group of thousands of investors who are helping tens of thousands of homeowners every year. We may not be the “traditional” route, but the reason so many choose to work with us is because we CAN help and we can do it quickly, which creates a win-win situation and allows you to sell quickly with no repairs.
Give us a call today to let us know what YOU need help with!