UW, WSU research shows GenY looking to own homes

The conventional wisdom today around the millennial generation, often defined as having been born between 1980 and 2000, seems to be that they aren’t as interested in owning a home as previous generations.

Often, this dynamic, diverse group has been shown to prefer the flexibility of renting to the stable, long-term arrangement provided by home ownership.

However, this is a misinterpretation of present-day trends, said Dr. Glenn Crellin, a professor at the Runstad Center for Real Estate Studies, University of Washington.

Crellin pointed out that the rate of home ownership for those under 25 today is actually higher than that of the under-25 baby boomers in 1970. Also, a recent poll of Washington State University students that he conducted showed that 48 percent of them expect to buy a home in the next 3-5 years.

While the willingness of young people to purchase a home is certainly there, the financial means to do so may not be, Crellin said. The underlying story, then, is not one of shifting mindsets but rather changing economic factors.

“[The recession] is probably going to delay purchases, but it’s not the permanent transition that the national press is predicting,” Crellin said.

The millennials, also known as Echo Boomers and Generation Y, present a long-term opportunity for the housing market but are having a very difficult time in today’s economic climate.