Have millennials finally taken over the lion’s share of the real estate market? It sure looks that way. The latest evidence: Rising housing starts, especially among new homes—an uptick that Sheryl Palmer, CEO of Taylor Morrison, largely attributes to lower mortgage rates fueling millennial homebuyers. Palmer said on CNBC that one in three of the company’s buyers are in this demographic group. “Five years ago, the generation made up 20% of Taylor Morrison’s buyers,” she said, and affordability issues are ‘not as real as I think the media portrays. Everyone talks about the millennials like they’re just one group of people and they’re not buying. We’re just not seeing that. In fact, we’re finding exactly the opposite: They’re quite qualified.”
Taylor Morrison said their housing orders were up by 30% in July and August, and they’re not alone. Many builders are seeing the same kind of bounce as low mortgage rates make homebuying more affordable. “People are feeling good, and their confidence is absolutely showing in the real estate market, and that’s not even to mention the demographic tailwinds we have with how the millennials are feeling about buying their first or second house, and certainly the boomers,” Palmer said.