Many more Millennials are expected to trade in their parents’ basements and older apartments for a place of their own.
The homeownership rate for adults between the ages of 25 and 34 is expected to rise from less than 40 percent in 2016 to possibly as high as 60 percent by 2025, according to recently released statistics from Freddie Mac.
The financial crisis along with high rents and home prices has slowed homeownership rates among young adults in the 21st century. Between 2000 and 2016, 700,000 young adults did not buy a home, according to Freddie Mac.
“Demographics, housing preferences and economic conditions will all play a role in the direction of homeownership in coming years,” Sam Khater, Freddie Mac’s chief economist, said in a statement. “If economic conditions improve, and incomes and entry-level housing supply increase in a meaningful way, homeownership rates for today and tomorrow’s young adults could exceed our current projections.”