As considered but not seen, TransUnion is projecting that the flood of first-time buyers are about to hit our nation in full force from 2020-2022. This recently published analysis is projecting that at least 8.3 million first-time homebuyers will enter the real estate-mortgage market between 2020 and 2022. 
According to TransUnion, this army of first-time homebuyers is greater than any three-year period in the last decade. The analysis also projects that this figure might have to be adjusted higher by upwards of 1 million additional buyers depending upon the trajectory of the nation’s economy.
Much of this demand is considered pent-up demand brought about by the egregious amount of student debt, shortage of inventory, especially starter homes, the shortage of skilled labor making it difficult for builders to meet demand.
Strong economic factors such as job growth and wage growth will finally allow Millennials to make the move into their own homes.
Also according to the report, the number of Gen Z consumers, categorized as those born in 1995 and after, who took out a mortgage more than doubled in the last 12 months.
This translated into the number of Gen Zers who were credit eligible (meaning they were 18 years or older) increased by 4.5 million in the last year, climbing to 31.5 million in the second quarter 2019, with another 13 million Gen Z consumers expected to become credit eligible over the next 3 years.
TransUnion did a survey of prospective homebuyers and found:
- Delayed home purchase was due to not having enough money for a down payment
- 58% said they were delaying their homebuying
- 51% said they thought they would need between 10 and 20% for a down payment
If you have any questions about this information or title insurance, please contact Ralph Aponte: 732.914.1400.
Counsellors Title Agency, www.counsellorstitle.net, founded in 1996, is one of New Jersey’s most respected title agencies, serving all 21 New Jersey counties with title insurance, clearing title, escrow, tidelands searches, and closing and settlement services for commercial or industrial properties, waterfront properties and marinas, condominiums, townhouses or residential single family homes. Counsellors Title also features its own Attorney Settlement Assistance Program™ [ASAP], which is an individual resource customized to fit the needs specifically of real estate attorneys, including, Documentation, Preparation, Disbursement of Funds, Attendance at Closing, HUD Preparation or Post-Closing Matters.
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