Mysterious millennials with no interest in homeownership have greatly upset hundreds of realtors. Likewise, lenders and mortgage companies in the past few years have been puzzled by the millennials’ consumer behavior. Pundits in the housing industry have expressed shock and awe at the millennials’ failure to embrace homeownership.
But times and statistics are changing as our economy improves. And, we are seeing our mysterious millennials suddenly buying homes in increasing numbers. They are defying the rumor-mongers who said they’d never understand the value of homeownership. How is this happening?
Mysterious Millennials and Military Service
Palm State Mortgage reveals a new trend in this article. We see a special group of millennials buying homes. Yes, we have discovered a new buying style for some millennials. It has just become evident over the last six to twelve months. Our Theory: Until this, a special sub-group of millennials discovered the wisdom of home-ownership. However, millennials in general viewed housing as just too expensive. Could the mystery of millennial homeownership be that simple?
You see, we recently looked at a very special group of millennials. This is the Millennial-generation veterans and active-duty military. In this blog, we think you’ll see that our findings will confirm the above theory.
Mysterious Millennials: Suddenly Becoming Home Owners
- In the last 12 months, through September, we saw a very nice increase in loans backed by the Department of Veterans Affairs. It increased by 2.3% over the year. Looking at the statistics closer, Palm State Mortgage saw a new trend. It seems, Millennial-generation veterans and active-duty military, led that percentage increase.
- There was an amazing 14% gain in the number of mortgages for Borrowers aged 23 to 38.
- That percentage accounted for 211,276 loans. This is a remarkable number for any age group.
- Added up, this meant that the mysterious millennials accounted for a 34% share of the total 624,332 VA mortgages. This included the previous 12-month period, as revealed by a report by Veterans United, the largest VA lender.
Military Service Results: Better Home Buying Through the V.A.
Chris Birk is the director of education for Veterans United. He stated, “There has been a question in real estate circles for years about when Millennials are going to start buying…” Then he added, “Young buyers who are in the military or have veteran status have been able to start buying way ahead of civilians.” He was referring to VA loans. “They don’t have to spend years saving for a down payment.”
Aha! Palm State’s Mortgage’s theory, exactly! Thus, the military has made this possible for a select group of mysterious millennials. They are able to step out of the shadows of the down payment sticker shock and see themselves as homeowners.
Information for the Mysterious Millennials You Might Know and Love
Some people do not even understand the value of mortgages backed by the VA. You see, the V.A. mortgage allows borrowers you to purchase your home without making a down payment. And statistics show these mortgage work out for both the lender and the borrower. This is proven by the fact that VA borrowers have a lower delinquency rate than borrowers backed by the Federal Housing Administration.
- On the one hand, the VA delinquency rate was 4.24% in the second quarter, (Yea!)
- On the other hand, the delinquency rate was 9.22% for borrowers with FHA-backed loans. (Cringe!)
Solving the Mysterious Millennial Relationship with Housing
One more important statistic shows us that the newer generations are on the move. And more importantly, they want to own houses of their choice. A large number of VA-backed loans were taken out by Millennial and Gen Z. First, consider borrowers younger than 23. Then, we discover they accounted for 45% of VA purchase loans. The Veterans United report recently showed us this statistic. And like most experts, we were a little surprised.
Firstly, we know our mysterious millennials are beginning to take homeownership seriously. Thus, we know how the V.A. is helping them do it. Let’s see where they are doing it.
Military Millennials: Finding “Home Sweet Home”
Drumroll, Please. We have an announcement: The top 10 cities Millennial and Generation Z home buyers are:
- Jacksonville, North Carolina.
- Killeen-Temple-Fort-Hood metro area, Texas.
- Oklahoma City, Oklahoma.
- El Paso, Texas.
- Fort Walton Beach-Crestview-Destin metro area, Florida.
- Austin-Round Rock, Texas.
- Jacksonville, Florida.
- Tampa-St. Petersburg-Clearwater metro area, Florida.
- Augusta-Richmond County, Georgia.
- Las Vegas
At Palm State Mortgage, we are so happy to see not just one, but two Florida cities on this Mysterious Millennial home-buying list. And therefore, we hope to see more millennials, military or not, discovering the value of our own hometowns in Orlando and the Central Florida area.
A Message for Mysterious Military Millennials and Everyone Else
Certainly, here in America, no one should try to force, shame or bully you into making a commitment as large as buying a home. Perhaps some mortgage companies have been guilty of those strategies in their outcry against millennial-style buying.
However, here at Palm State Mortgage, we have always kept a positive attitude toward any home buyer or mortgage seeker. Certainly, this includes any age range, military or civilian. Our door is open and it always has been. Our welcome mat is out when you feel you are ready to discuss your options. And by the way, one of the best options is a loan through the VA Loan Program. As we’ve stated many times, buying a home is the largest financial commitment most people ever make.
Therefore, we invite you to come for a visit. And we’ll tell you all about it when you feel the time is right. Thus, we’ll help you get started off on the right foot in the mortgage process. Meanwhile, take a look at this millennial mini-guide if you are beginning to think it’s your time to go house shopping.
We agree with a recent statement made by Veterans United. “For many people, the right time is when they feel financially and emotionally ready for the responsibility. That’s not always easy to discern, especially for first-time home-buyers.
By the way, Halloween is just around the corner. We’ve noticed all the yard displays and porch decorations! Here’s hoping you and your family have a happy, healthy Halloween season!