Millennial homeownership has jumped 74% in five years, with Florida and California leading the trend.
Millennial homeownership is on the rise. Within the last five years, there has been a 74% increase in millennial-owned homes across the country, and data from RentCafe.com shows Florida and California top the list with the most significant increase.
Previously, many millennials delayed buying a home because of debt, not having enough for a down payment, and overall affordability. But experts say now, as they've gotten older, millennials have reached peak earning years and have more money saved up. Many have also started families, allowing them to use two incomes to buy a home.
Donnell Fleming and his wife started working right out of school. Fleming said the journey had its challenges.
"The journey was ... it was some ups and downs."
The couple had been saving to buy a house, but it was their 401(k)s that allowed them to put a down payment on their home. Fleming said living rent-free with family early in their careers helped them get there.
"Luckily we had some family that allowed us to stay in the beginning of our career. Stay with them, I guess stay rent-free is the best way to describe it."
Fleming said the key was being intentional with money.
"Put your money somewhere, not just purchasing the fanciest car, the fanciest this... and really looking into putting it into something that will grow over time and not something that depreciates right away."
David Jefferson, a real estate agent with Weichert Realtors SoCal Living, said he is seeing more millennials in the market looking to buy. As they have more money saved up, they are weighing the benefits of renting versus buying.
"There are more benefits that you get as a homeowner — you get tax incentives as a homeowner; your mortgage is going to stay stable. When you rent, the mortgage can fluctuate. Your property owner or your landlord can raise rent on you after your lease is up."
Jefferson said the market is also starting to shift in buyers' favor.
"Technically we are in a sellers market but we are starting to see the trends favoring more buyers. We are getting things like credits from the sellers."
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