More Millennials Expected to Enter a Tough Housing Market in 2022

A recent study by Realtor.com forecasts a surge of Millennial home buying in 2022 despite limited demand and rising housing prices, SmartAsset reports. After trailing behind boomers and Generation X in 2021, Millennials are starting to make waves in the housing market, especially as a growing economy, a strong employment market, and greater workplace flexibility give first-time buyers more leverage against older competition.

In 2022, over 45 million Millennials will reach the prime ages between 26 and 35 for buying their first homes, but an ongoing housing deficit and rising prices will continue to create challenges for new buyers.

First-time homebuyers should also note that as a direct result of the ongoing COVID-19 pandemic, there is an increase in the number of people working from home. And this has a big impact on the areas where homebuyers are looking to purchase.

With living close to the office no longer of concern for many people, buyers are able to look at a wider range of locations. Survey data shows that 19% of sellers are moving because they no longer need to live close to the office, while in spring of 2021 it was just 6%.

That said, this also means Millennials will have to compete with other homebuyers who are looking for more space so they can have a home office or just generally more space for a place that is now for both living and working. Consequently, the demand for 2,000 square foot single-family homes is expected to outpace new construction, and this will compel many buyers to pay more or sacrifice space.

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