Summary List Placement
The housing market has been caught in a perfect storm.
As Covid-19 cleared out cities, millions of Americans fled to the suburbs, spurring a boom in the housing market. At the same time, mortgage rates hit all-time lows, making it easier than ever to purchase a home. The cherry on top was a lumber shortage that cut into new-home construction and made new houses more expensive.
The result is the hottest housing market in 15 years. As homebuilders sprint to meet demand and mortgage rates remain suppressed, it doesn’t seem like the housing market boom is going to slow down anytime soon — creating an excellent opportunity for buying home-improvement stocks, according to a recent note from Bank of America analysts led by Elizabeth Suzuki.
For the last six years Bank of America has conducted its annual Millennial Home Improvement survey, asking over 1,000 millennials about their living situations and whether or not they plan to purchase a home. Every year the percentage of millennials who have bought a home has increased, though this year’s results indicate that while older millennials continue to dive headfirst into the housing market, younger millennials have been left behind.
Overall, the percentage of millennials who own a home rose from 51% last year to 52% in 2021. However, Bank of America analysts noted that while the percentage of homeownership among older millennials (age 33-37) rose from 57% to 59% year-over-year, homeownership among younger millennials (age 28-32) declined from 46% to 41%.
Not only are older millennials more likely to have purchased a home in the last year than younger millennials, older millennials are decidedly in favor of owning a home rather than an apartment, townhouse, or condo. In addition, among millennials of all age groups, non-homeowners looking to buy a house are more …read more
Source:: Business Insider