Generation Y carefully optimistic about residential purchases

04.16.09
By Miriam Lamey

Call them Generation Y, Echo Boomers or Millennials, but this group born roughly between 1977 and 1994 are growing up, with some even preparing to apply for their first home loan.

Until now, there had been little data on Generation Y's financial planning, but a new survey from the Concord Group reveals some emerging trends about this group's plans for future home purchases.

The almost 80 million-strong generation will "have more impact on the national housing market than any group since the early Baby Boomers," said Concord Group principal Emma Tyaransen.

According to the survey, 50 percent of Generation Y respondents anticipate purchasing their first home in the next three years. Another 50 percent said tax credits or lower interest rates would expedite this process.

To help stimulate the residential housing market and get families in their own homes, the federal government announced a first-time homebuyer tax credit earlier this year that eligible taxpayers could apply to 2008 or 2009 tax returns.

However, some members of Generation Y will still be taking out a mortgage loan regardless of other economic incentives. The Concord Group found the majority of respondents are likely to make a down payment of less than 20 percent on their next home purchase.

More Housing Market Articles | News Home | Discuss in our Forum

Younger generation expected to have major impact on housing market