Americans have lots to be optimistic about in regards to the housing market. According to a recent report from Bankrate.com, one in every four Americans is considering buying a home this year.
Of that group, 16 million say they are “very likely” to buy a home, while 20 million are “somewhat likely.” That’s 15 percent of all non-homeowners in the U.S.
Minorities are more likely to buy a home in the coming year, with almost two in every five minorities saying there was at least “some likelihood.” This was double the percentage of whites who said the same thing.
Generationally, older millennials aged 27 to 36 and Gen Xers aged 37 to 52 have the highest likelihood of homeownership this year, with 20 percent indicating they may make the move. Currently, 79 percent of the silent generation are homeowners, 70 percent of Baby Boomers are, 60 percent of Gen Xers, and 29 percent of millennials.
“Among millennials, there's a lot of pent-up demand for home buying," said Holden Lewis, Bankrate.com Senior Mortgage Analyst. "They have been stymied by stagnant wages, student loans, and a lack of available starter homes. If enough affordable homes are put on the market, we might see a surge of first-time homebuyers in their early to mid-30s."
A large portion of non-homeowning parents are considering making the plunge, too. According to the report, they’re three times more likely than non-parents to buy a home in 2017. Approximately two-thirds of non-homeowning parents are not looking to purchase a home due to financial burdens that are holding them back.
"Having kids and raising a family is a primary reason why Americans take the leap into home ownership – many consider it a key component of the American Dream," Lewis said. "However, families need to be cognizant of all the expenses that come with a house. You don't want to leave yourself house poor."
Homeownership is more come in the South and West. According to the report, 43 percent of Northeasterners and 36 percent of Midwest residents would rather rent than own. Those stats for the South and West are just 33 and 30 percent, respectively.
See the full report at Bankrate.com.