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MortgagePoint » Your Trusted Source for Mortgage Banking and Servicing News 50 October 2023 F E A T U R E S T O R Y GETTING TO KNOW THE MILLENNIAL HOMEBUYER Millennials continue to be a powerful force in the homebuying arena, and new research from ServiceLink offers insights into their priorities, behaviors, and intentions for the coming year. B y K R I S T Y F O L I N O I t's time to ditch the "forever rent- ers" stereotype. Millennials have proven to be the homebuying de- mographic to watch over the past decade, representing the largest share of buyers from 2014 to 2022, according to data from the National Association of Re- altors (NAR). Now, roughly between the ages of 27- to 42-years-old, millennials are raising families, moving forward in their careers, and approaching or reaching their peak earning years. Their interest in homebuying remains strong, and they are poised to make a meaningful impact on the housing market. Of course, millennials are not the only generation looking to purchase homes. Baby boomers (born 1946-1964) are high on buying, too—comprising the largest share of buyers and sellers from July 2021 to June 2022. And Gen Zers (born 1997-2012) are certainly hot on the heels of the millennial in terms of emerging demographics. Still, those looking to gain market share in the origination space know that understand- ing and appealing to millennials continues to be pivotal to success. According to the 2023 ServiceLink State of Homebuying Report (SOHBR), millennials top the list of homebuyers considering purchasing a home or taking out a home equity loan in 2023. That in itself is a pretty good reason to get to know them better. Add to that the fact that these young customers will have a variety of financial needs throughout their lives. The 2023 ServiceLink State of Home- buying Report survey was completed on- line among a panel of potential respon- dents who purchased a home, or tried to purchase a home, in the past three years. A total of 1,000 respondents, 18 years of age and older, completed the survey. In- terviewing was conducted by Sago from January 7, 2023, to January 13, 2023. Establishing relationships with mil- lennials at this stage in their lives could mean years of repeat business, referrals, and revenue generation across multiple channels. The following highlights of the SOHBR may help you gain additional insight into this highly influential subset of homebuyers. Forget market challenges: Millennials want to buy D espite high home prices and interest rates (or perhaps anticipating they may fall in the coming months), 60% of millennials shared their optimistic outlook that conditions are favorable for buying. In fact, 52% of all SOHBR respondents said they are open to purchasing a home in the near future. Of those respondents, 61% were millennials. Gen Xers (born 1965-1980) constituted 25% of the total, with Gen Zers (12%) and baby boomers (2%) accounting for the balance. Millennials are the most likely of any generation to tap into their home equity T he surge in home values since 2020 has elevated many homeowners to equity-rich status. More than one in five SOHBR respondents (21%) said they have more than $100,000 in home equity. Another 41% reported having between $50,000 and $99,999 in tappable equity. Millennials are the most likely of any generation to take out a home equity loan: 49% said they would consider it, compared with 44% of Gen X, 41% of Gen Z, and 12% of baby boomers. The bulk of respondents (73%) said they would use the money for home improvements, while 20% would pay off debt, including student loans. Interest- ingly, women were more likely to say they would earmark the funds for paying off debt, while men leaned more toward home improvements. Millennials love leveraging technology throughout the mortgage process I t should not come as a surprise that, as a generation that has largely embraced K R I S T Y F O L I N O is SVP, Custom Solutions at ServiceLink. Folino has approximately 25 years of experience in the mortgage industry, with a background in valuation, title and settlement services, and P&L management.