2016 has been predicted to be the year when millennials will finally shift from renting to owning a home. Recent data reveals that the predictions seem to be true, as more millennials are applying for mortgages to buy their own house.
LendingTree recently performed an analysis of their mortgage requests and found that the millennials are now shifting from renting to owning, Realtor.com reported.
"The under-35 crowd had been, for some years, hesitant to enter the housing market, but we're seeing that start to shift," said CEO of LendingTree, Doug Lebda. "The data all points to the fact that millennials are increasingly eager to own rather than rent, and even the incredibly high real estate prices in some markets don't necessarily deter them."
Their findings showed that majority of millennials applied for mortgages in Boston at 52.46 percent. Pittsburgh comes next at 48.96 percent and Washington, DC at 48.17 percent.
The publication further noted that the average mortgage granted to millennial homebuyers in Boston was $343,783. In Pittsburgh, millennials were granted an average of $161,083 and $352,720 in Washington, DC.
Real estate broker Douglas Bray also told the publication that most millennial homebuyers in Boston preferred one- or two-bedroom condos. This, however, changes the moment they start their own family.
As previously reported on Realty Today, many millennial homebuyers are now choosing to live in the suburbs than in the city.
The said shift was due to the affordable prices of houses in the suburbs than those in the cities. Millennials are also taking into account the amount they would have to pay for the down payment.
The aforementioned publication stated that the amount required for the down payment greatly depends on the location of the house you are buying.
In San Francisco, a $160,000 down payment does not really sound so much, but the average down payment that millennials could afford was only $32,760.
