Your Lake of the Ozarks Mortgage Lender: How Millennials are Impacting the Home Market in 2020

The housing market has been doing some really interesting things over the last several months, and Team Lasson is interested to see how it continues on in 2020. One very intriguing aspect is the role that Millennials are playing in the home buying arena. Millennials are projected to fuel the housing market in 2020, while still overcoming the high debt and financing restraints that once held them back - even down to taking out more than half of the new mortgages in the U.S.! Here are a few interesting things to know about these Millennials and how they are affecting the housing market in 2020.

Get to Know These Millennials

Millennials are those born between 1981 and 1996 which puts them between 24 and 39 years old. This covers a wide range of home needs, as some will be just starting out in their very first home, and others are looking for vacation homes at the Lake of the Ozarks as they prepare for the next season with high schoolers and college-age kids.

In fact, a recent Zillow analysis showed that 21.9% of millennials still live at home with their parents instead of buying a home of their own. This is roughly 14 million young adults, but many of them may begin looking for homes in the near future which can push housing forward for those first-time buyers.

Millennials and Downpayments

Studies are showing that saving the traditional standard 20% has been challenging for this generation due specifically to student loan debt, but also due to increases in the cost of living, and a lack of savings. This means that millennials have a much smaller amount saved for down payment, and are agreeing to take on private mortgage insurance in order to put less down. Another pattern that is showing up is that they are asking family for financial help. Many studies show that millennials are three times more likely to ask for help with their down payment from family members - primarily parents and grandparents.

Millennials and Timing

This generation is the one that grew up after the financial crises, and this impacts the housing market because they are a little slower to start families and get settled. As these millennials are coming of age and beginning to find their footing, a large portion of them will be turning 30 (roughly 4.8 million of them!), and this is the “peak home-buying age.”

On the flip side, the older members of the generation have begun to spread out into the larger, more expensive luxury markets where they search out quality of life and amenities. This means that the Lake of the Ozarks could be a great landing spot for those millennials who are ready to settle down in an area with a “small-town feel” but still take advantage of the Lake of the Ozarks lifestyle. Of course, another alternative is that the older Millennials may be ready to take on a vacation home at the Lake of the Ozarks. Many buyers tend to start looking for vacation destinations to call their own as their children get older. It can provide a safe place to land for a Summer full of vacations with your teenagers and their friends, or even as a place for your college students to come to hang out during breaks. 2020 could be the perfect year for millennials to buy a vacation home at the Lake of the Ozarks!

The 2020 Takeaway

Millennials of all ages will help keep overall buyer demand flourishing in 2020. Last year, the potential buyer pool was growing nationwide due to the aging millennials population. This is due to a combination of low-interest rates and rising rent costs. 2020 could be the ideal year for the millennials to buy their home, and Team Lasson is here to help. We help customers around the entire United States purchase their home, and with being based at the Lake, we love to help our local community purchase the home of their dreams. If you are ready to get started, visit our website (www.YourLakeLoan.com) to fill out an application. From there we can help you gather up appropriate paperwork and figure out the best home price for your budget.

We look forward to working with you, and helping you make years of memories in a lake home through your mortgage at the Lake of the Ozarks!

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