A new Urban Institute report, Millennial Homeownership: Why Is It So Low, and How Can We Increase It?, analyzes homeownership trends among millennials, the generation born between 1981 and 1997.
According to the report, millennials differ from previous generation in several ways. Millennials, the largest generation in U.S. history, are more racially and ethnically diverse than previous generations, as well as more highly educated. Further, in addition to preference differences, millennials are more likely to have external barriers delaying or deterring them from owning a home. These barriers include high education debt, high rental costs contributing to an inability to save for a down payment, and a low supply of affordable starter homes.
Urban Institute provides several policy recommendations to increase homeownership opportunities among millennials, including increased financial education, streamlined mortgage processes, and increased housing supply through zoning reform.
Click here to read the full report.