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TransUnion Expects Millennial Housing Boom in Next Few Years
Thursday, December 8, 2016 6:45 AM

Over the next five years, TransUnion estimates that potentially 17.1 million first-time homebuyers will enter the housing market. For its analysis, TransUnion developed a model that examined thousands of credit scores and attributes determining credit worthiness and likelihood to purchase a home.

The resulting “First-Time Homebuyer Propensity Model” identified specific consumers with the highest probability of becoming first-time homebuyers and determined that there could be as many as three million first-time homebuyers over the next year.

This would add a significant number of consumers to the mortgage pool. For comparison, 6.2 million consumers acquired a new mortgage in 2015, almost half of which were first-time homebuyers.

TransUnion’s projections are based on U.S. consumers who do not currently have a mortgage, coupled with long-term estimates for growth in the mortgage purchase market and the percentage of first-time homebuyers in the traditional mortgage market.

The study shows that millennial consumers aged 20-39 will likely represent the majority of first-time homebuyers. In 2015, consumers in this age group represented 60 percent of first-time homebuyers, up from 44 percent since 2000.

Read more at TheFinancialBrand.