By Julissa Catalan
According to a new study released on Thursday by Harvard University’s Joint Center for Housing Studies, the underrepresented community will account for more than 50 percent of first-time homebuyers by 2025. Black and Latinos will also make up one-third of overall U.S. households.
Currently the number of U.S. households stands at about 122 million and is expected to rise between 11.6 million and 13.2 million, over 2015 to 2025.
The report also indicates that millennials—who statistically have proven to still live at home with their families following the housing bubble burst—will dominate the first-time homebuyers market at almost 50 percent.
These twenty-something’s are estimated to increase households by 2.7 million within the next 10 years as they get into their thirties.
However, these numbers are expected to fluctuate, being that Blacks and Latinos have a lesser income and therefore mortgage loan availability may be difficult to obtain.
The study also said mounting student debt could also be a factor in delaying this progress for millennials.
“Ultimately, the large millennial generation will make their presence felt in the owner-occupied market,” says Joint research manager, Daniel McCue. “Just as they already have in the rental market, where demand is strong, rents are rising, construction is robust, and property values increased by double digits for the fourth consecutive year in 2013.”
The number of senior citizen-owned households may also increase as the baby boomers are on their way to retirement. A 10.7 million increase is expected by 2025.
“The housing recovery is following the path of the broader economy,” Joint Center research director, Chris Herbert said. “As long as the economy remains on the path of slow, but steady improvement, housing should follow suit.”