TheMReport — News and strategies for the evolving mortgage marketplace.
Issue link: http://digital.themreport.com/i/488965
50 | Th e M Rep o RT o r i g i nat i o n s e r v i c i n g a na ly t i c s s e c o n da r y M a r k e t ANALYTICS The laTesT survey shows Millennials not entering Housing Market Young adults aren't entering the housing market in droves yet, but survey respondents believe "it is only a matter of time." t he millennial generation isn't very active in the current housing market, according to a survey released in the March 2015 Mortgage Industry Outlook Report by The Collingwood Group and The Five Star Institute. Approximately 61 percent of survey respondents said they see no evidence of new volume coming from the millennial generation. Student loan debt, a lag in finding employment, and wage stagnation were cited as some of the reasons millennials have yet to enter the housing market. About 70 percent of students accumulated loan debt in 2013, and the average student racks up almost $30,000 in debt by gradu- ation, according to an annual report on loan debt released by the Institute for College Access and Success. The millennial population is also starting households and getting married much later than previous generations, which delays their need to buy. However, unem- ployment rates among millennials may be the biggest reason why this generation is slow to enter the housing market. The unemploy- ment rate for younger millenials remains high at 11 percent for 20- to 24-year-olds as of November. Older millennials are experiencing a healthier job market with only about 5.9 percent of those ages 24 to 35 unemployed. However, survey respondents believe millennials will enter the market in the near future, and research shows millenials are still interested in becoming home- owners one day. According to a Zillow survey, respondents ages 18 to 34 believe more strongly that owning a home is necessary to being a respected member of society, living a good life, and obtaining the American Dream than previous generations. "It is a matter of time (perhaps 10 years) before the millenni- als become homeowners," one participant in the Mortgage Industry Outlook Report said. "To a certain extent, the industry should just be patient." The Collingwood Group con- ducted the survey in partnership with The Five Star Institute. A diverse group of mortgage industry leaders was polled, with the larg- est percentage of those surveyed coming from lending or originating (37 percent), followed by service providers and industry vendors (19 percent), and consultants/advisors/ attorneys (16 percent). (Note: The Five Star Institute is the parent company of MReport magazine and TheMReport.com) "It is a matter of time (perhaps 10 years) before the millennials become homeowners. To a certain extent, the industry should just be patient."