[caption id="attachment_231818" align="aligncenter" width="1024"] Delaware Millennials took out the lowest number of home loans in the country in 2022, and on whole, the loan amounts are getting larger. | DBT PHOTO BY KATIE TABELING[/caption]
WILMINGTON — Millennials in Delaware took out 41.% of the nation’s home purchase loans made in 2022, according to two industry reports.Researchers at Construction Coverage, an industry website focused on reviews for homebuyers and data, reported that Delaware had among the lowest number of millennials who took out home purchase loans that year. Florida and South Carolina were also in the lowest number of millennials taking out home loans that year - and all three states have an older population. Construction Coverage looked at data from the Federal Financial Institutions Examination Council.But as home prices continue to rise, millennials are taking out larger home loans. In the 2022 National Association of Realtors Profile of Home Buyers and Sellers, millennials — people born between 1981 and 1996 — are the typical first-time buyers out on the market. The average mortgage ranges between $315,000 to $365,000. A home listed by a realtor sold for an average of $345,000.A NAR report on generational trends also shows that about 22% younger millennials (ages 24 to 32) received down payment help in terms of a gift or a loan from family or friends. The study also shows that these buyers are delayed primarily from student loan debt and higher rental costs cutting into savings for a down payment. About 35% of young millennials had student loan debt with a median balance of $30,000, while older millennials (ages 33 to 42) had debt at $40,000.Nationwide, first-time home buyers made up 26% of all home sales, the lowest since the NAR started collecting data in 1981.Still, Delaware continues to build new homes at a steady pace. By July 2023, the United States Census Bureau reports that 3,173 housing units – defined as a single dwelling unit – were permitted, with 536 in that month alone. In comparison, 326 dwellings with five or more units were permitted for the whole year so far and 54 two-dwelling units were permitted.Lautz says that the NAR estimates that there are 5.5 million homes short of the country’s current population, and that the homebuilder activity is still picking up across the country.“I am encouraged by that. I do think there’s an understanding that we need more homes out of the marketplace. But the hesitation is that these new homes on the marketplace are typically $30,000 more than existing homes,” she said. “They do come at a price premium that a first-time homebuyer may not be able to afford.”The NAR report also found that while family remained a big factor in selecting a destination, others were still looking for affordable homes which led to rural areas seeing an influx of home transfers, Lautz added. Remote work arrangements may have also been formalized in the last year, helping drive those decisions.The shares of buyers who purchased homes in small towns (29%) and rural areas (19%) were the highest ever recorded, while the shares of homes purchased in suburban (39%) and urban (10%) locations declined from one year ago, the report said.
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