Connect

Find us on...

Dashboard

Login using...

New Search X

Homeownership Is A Dominant Gene

Posted by David E. DeChant on Wednesday, September 5th, 2018 at 8:48am.

There are many things that factor into the decision to buy a home. New research from the Urban Institutesuggests that one of those things may be inherited from your parents.

Children are More Likely to Own a Home if Their Parents Did

According to an analysis of millennial homeowners, the homeownership rate of those whose parents rent their homes is 14.4%, while the rate amongst millennials whose parents are homeowners is 31.7%!

“A young adult’s odds of homeownership are highly correlated with their parent’s homeownership.

Without controlling for such factors as age, income, education, marital status, and race or ethnicity, there is a 17 percentage-point gap between the homeownership rate for young adults whose parents are renters and young adults whose parents are homeowners.”

The study also revealed that as a parent’s net worth increases, so does the likelihood that their child will own a home. These two findings are not surprising as we know from the Survey of Consumer Finances that a homeowner’s net worth is 44x greater than that of a renter.

So, a parent who is a homeowner will have more wealth which will, in turn, increase the chances that their children will own their own homes in the future.

Below is a breakdown of the relationship between a parent’s wealth and a millennial’s likelihood to own a home.

The Good News: The high homeownership rate amongst baby boomers (likely the parents of many millennials) is a great sign that millennials will want to own homes. We are already seeing this in the high-demand environment that we are currently experiencing in the starter and trade-up markets.

Bottom Line

Even though millennials took longer than many of the generations before them to start home searches of their own, the data shows that they will not be waiting much longer! Talk to a REDCO Agent today!

 

Source: https://www.keepingcurrentmatters.com/2018/09/05/homeownership-is-a-dominant-gene/ 

4 Responses to "Homeownership Is A Dominant Gene"

What Does The Future Hold For Home Prices? wrote: [...]Links

Homeownership Is A Dominant Gene
Rents Are On The Rise: Don’t Get Caught In The Rental Trap!
5 Reasons[...]

Posted on Thursday, September 6th, 2018 at 11:09am.

What Does The Future Hold For Home Prices? wrote: [...]Links

Homeownership Is A Dominant Gene
Rents Are On The Rise: Don’t Get Caught In The Rental Trap!
5 Reasons[...]

Posted on Thursday, September 6th, 2018 at 11:09am.

Home Prices Up 6.49% Across The Country! [INFOGRAPHIC] wrote: [...]Links

What Does The Future Hold For Home Prices?
Homeownership Is A Dominant Gene
Rents Are On The Rise: Don’t Get Caught In The Rental Trap!




Tags[...]

Posted on Friday, September 7th, 2018 at 10:28am.

4 Reasons Why Fall Is A Great Time To Buy A Home! wrote: [...]The Country! [INFOGRAPHIC]
What Does The Future Hold For Home Prices?
Homeownership Is A Dominant Gene




Tags

First Time Home Buyers (110)
For Buyers (147)
[...]

Posted on Monday, September 10th, 2018 at 9:46am.

Leave a Comment

Get Pre-Approved For a Mortgage 

 

 

Learn About Becoming a Redco Agent

Find us on FACEBOOK