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Are Millennials Finally Entering the Housing Market?
Wednesday, July 3, 2013 6:45 AM

Mortgage Lenders are waiting patiently as the largest generation demographic in history, the Millennial generation reaching nearly 90 million now, is beginning to take advantage of the opportunities in the housing market as they reach their 30s.

They've delayed their entry into the housing market due to high unemployment and student loan debt. However for years now, they've lived in their parents homes or rented properties not quite fitting of their own desires and are starting to take the plunge into purchasing their first homes.

A recent article by USA Today GenY is finally in a mood to buy (houses) explains the Millennials are well-versed in regard to real estate. They are evaluating the rent versus buy equation and quickly seeing that buying a home is to their advantage. So, what does all this mean to credit unions?

According to Linda Clampitt, senior vice president of CU Members Mortgage, credit unions must position themselves to lure these important members. 

She offers the following suggestions:

  • First, educate them in the opportunities available in home buying. Provide rent vs. buy calculators to help them see the savings in purchasing a home. First-time homebuyer seminars are a huge help in getting them motivated and setting proper expectations. Plus, guiding them to understand the availability the market currently holds by building equity will encourage them.
  • Product availability is a requirement. Often, most Millennials don't have large sums of cash at their disposal and yet don't want to delay their housing needs to save a large down payment either. FHA is still a low down payment option for them and if you aren't offering this product you must realize the necessity it is as this generation has a growing need for lending assistance.
  • Technology solutions are a must for Millennials. They want their needs met on demand - even with home lending. An online home loan application provides them the opportunity to apply online when they want and need. Make it quickly accessible and easy and they're hooked.

“Don't get left behind with this surge of buyers,” cautions Clampitt. “It's not too late to make some of these key changes to ensure when they are ready to buy a home they know the local credit union has all they need.”

CU Member Mortgage is a premiere business alliance of Credit Union Resources, Inc.  To learn more, please visit http://www.curesources.coop/cu_members_mortgage.html.