New data from the National Association of Home Builders show that homeship interest among millennials has grown steadily since 2007, but home prices have yet to increase.
The National Association says that the number of millennials who own their own home has increased from 18 percent in 2013 to 20 percent in 2019.
This trend has been driven largely by the number who have homeshipping as opposed to owning.
But the NAHB says that homeownership interest has also increased among the baby boomers, and that this trend will continue as millennials enter the workforce.
“Younger people are more willing to accept the responsibility of home ownership,” said Laura Rizzo, NAHB president and CEO.
“It’s the right choice for their families.”
In 2018, 32 percent of millennials said they were homeowners, up from 28 percent in 2017.
While the percentage of millennial homeownership has risen since 2007 by 5 percentage points, it is still less than half of that among the boomers.
The data also suggests that homeshipper millennials are choosing to live with their parents or siblings in an apartment or condo.
Millennials also are more likely to live in smaller homes.
Nationwide, 32.6 percent of homeshippers lived in a home of three or more bedrooms, up by 3 percentage points from 2017.
However, the percentage has decreased for homeshippies living in two- or three-bedroom homes by 8 percentage points since 2017.
Homeshippers who were living in a one-bedroom home saw their home values increase by 4.6 percentage points over the same time period.
The number of homeshare homes dropped by 10 percent in 2018.
The numbers of homeshearing and homeshare homeownership have also increased.
Homeshare homeownerships increased by 6.2 percentage points between 2007 and 2019, from 19.6 million to 22.3 million.
The housing market has been on a tear for millennials since the recession.
The NAHB estimates that millennials have made $11.5 trillion in home equity purchases since the housing crisis began.
Home prices rose more than 15 percent in the first quarter of 2019, which was the fastest pace of any quarter in the last decade.
But it is clear that millennials are finding it difficult to buy a home.
In the first nine months of 2018, home prices fell by 8.5 percent.
This year, they are expected to drop by 8 percent.
In 2018 and 2019 alone, homeownership rates were about half of the rate seen in the third quarter of 2020.
Home values were down 3.2 percent in August and 5.7 percent in September, the worst fall in two years.
The national foreclosure rate, which includes foreclosure notices filed on residential property, has risen from 10.5 to 11.8 percent.
The U.K. also reported a steep drop in foreclosures last month.
Homeownership has fallen in the United Kingdom since the end of the financial crisis, according to a report from Markit.
Home ownership fell by 2.7 percentage points in the year to September, according a report by Lloyds Banking Group.
Nationwide in 2019, 7.3 percent of the homesharing population were renting.
The rate for homeshare households fell to 6.4 percent.
While millennials are beginning to live together, they still are not sharing in the family home.
A study from the UBS Global Housing Analytics firm found that millennials who lived with their family were about one-quarter less likely to share a home than those who lived alone.
Millennials who live with family are also less likely than their counterparts to own a home or rent, and they are more dependent on credit cards to pay for their housing expenses.
The report says that millennials with families live at a greater risk of homelessness, and a higher risk of eviction.
The decline in home ownership among millennials is largely due to the housing market.
In 2019, just 17.7 million millennials were homeowners.
This was up from 14.5 million in 2018, when 18.4 million millennials had homeshopping, according the report.
Millennials are more inclined to move into single-family homes, which are less expensive than apartment or condominiums.
“Single-family home ownership is the new standard for millennials,” said Rizzoo.
“They are more interested in owning a house and renting than ever before.”
But housing affordability has gotten a lot better over the last year.
In 2017, home values rose by 5.4 percentage points nationwide, from $2,700 to $3,700.
The average price for a single-unit home was $1,900 in 2019 and $2.3 in 2020.
This increase in price was partially driven by the housing boom.
The price of single-units rose by 15 percent from 2017 to 2019, according an analysis from the Institute for Housing Studies.
In comparison, prices for two- and three-family houses rose by just 0.