Could we have been wrong all this time about millennials ending the American dream of homeownership? Were we too quick to judge that they were more interested in avocado toast and tidy rental units? Looks like it.
A study out this week from Realtor.com says millennials are suddenly swamping the U.S. mortgage market. The loan data analyzed shows the much-maligned generation (ages 19 to 37) is currently responsible for the largest share (42%) of new mortgage loans by dollar volume, narrowly surpassing Generation X for the first time.
The stereotypical purchase made by America’s millennial buyer is cheaper than that of Gen-Xers and Boomers, at a median price of $238,000—and they’re putting down less money up front. The average down payment by a millennial homebuyer on a mortgaged home was 8.8% in December 2018. Paired with rising home prices, it is evidence millennials are taking on bigger mortgages, as a group, in order to put down roots.