According to a recent MReport, homeownership has risen for young adults but that could change due to the COVID-19 outbreak. The article highlights data collected in 2018 on young adults by the National Association of Homebuilders. The report states that for the first time in decades, adults between the ages 25-34 had an increase in homeownership. This generation of adults has a history of decline in regards to homeownership, typically due to financial instability. In the past decades, financial debts have caused young adults to move home with parents, communal living, or live with roommates. The report concluded that while a large amount of young adults still return home, there has been a positive shift in this trend.
WILL THE COVID-19 IMPACT THIS TREND?
Although this is excellent news, many experts are concerned this shift will be reversed due to the COVID-19 outbreak. It may be difficult for these young adults to weather the storm COVID-19 has brought to the American economy. Facing job loss, unemployment and wage disappearance may discourage this trend from continuing. Ellie Mae reported that in February the refinance share for all loans closed to millennial homeowners was 34% and conventional loans represented 75% of loans. The Ellie Mae Millennial Tracker divides millennials into two groups – older and younger. 41% of all loans closed for millennials were within the older group, compared to the 18% of younger millennials.
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