In the News
Presented by Prairie Title
Commentary by Frank Pellegrini, Prairie Title CEO
One distressing story line that has emerged in the real estate market is the dearth of so-called millennials (roughly ages 18-34) buying and selling homes. It has been the history of the American economy following the Great Depression that each current middle-aged generation has been succeeded in home ownership in greater numbers by the following generation. That spurs home building and, if there aren’t sufficient buyers, sellers’ aspirations to move into larger homes or downsize when the time is right become difficult to fulfill.
All is not lost though. A recent CNBC piece asks whether millenials are starting to embrace the American Dream, and the answer is really quite positive. Millenials are waiting longer to buy their first homes and may opt for buying in the city rather that the suburbs, but they are moving into the home buying market. CNBC quotes a report from the Demand Institute: “Today there are just 13.3 million [U.S.] households, both rental and owned, headed by millennials, but this number will nearly double in the next five years.”
But don’t expect the situation to change overnight. Patrick Simmons of Fannie Mae recently commented that, “The continued slide in household formation and homeownership among young adults suggests that more robust labor market improvements, among other factors, are needed for young Americans to get a stronger foothold in the housing market.”
As a real estate practitioner and half of a Baby Boomer couple that may be looking to downsize before too long, I hope that more robust labor market is coming, and coming soon.
On a different note: The first Tuesday in November is Election Day, and this year in Illinois we have a full slate of races including U.S. Senator, governor, statewide constitutional officers and members of the state legislature. I am not in the business of endorsing candidates, but I am a fierce advocate for voting. We have important issues to decide in our state and our country in the coming years, and the most important way to ensure that you have a voice in the process is to vote. Whatever your political leanings, I urge you to get out and vote on November 4.
Questions or comments? Call me at 708-386-7900, or send me an email: frank@prairietitle.com.
Questions or comments? Call me at 708-386-7900, or send me an email: frank@prairietitle.com.
Other stories we’re following:
Mortgage Activity Stuck in Neutral
New Home Sales Hit Six-Year High
Consumers Expect Rising Home Prices
Don’t Blame Appraisals.
New Home Sales Hit Six-Year High
Consumers Expect Rising Home Prices
Don’t Blame Appraisals.
