New analysis from TransUnion is predicting an influx of first-time homebuyers once the new year rolls in. In fact, the company is predicting 8.3 million first-time homebuyers will be entering the mortgage market from 2020-2022.
"While we’ve recently seen a boom in refi activity, actual homeownership rates are down. Challenges have included high home prices, sluggish wage growth and limited housing inventory," said Joe Mellman, senior vice president and mortgage business leader at TransUnion, according to HousingWire.
"But we may be starting to see daylight as slowing home price appreciation, low unemployment, increased wage growth and low interest rates are helping affordability. As a result, we are optimistic that first-time homebuyers will contribute more to home ownership than at any time since the start of the Great Recession."
Meanwhile, the report also revealed that the number of Gen Z consumers more than doubled in this past year. That is an increase of 4.5 million eligible Gen Z consumers before the second quarter of 2019.
"To get more insight into prospective first-time homebuyers’ mindsets, TransUnion surveyed 943 U.S. residents who have never owned a home and expressed interest in buying one in the next three years," according to HW.
"Of the 943 surveyed, 45% said they were seeking more privacy when buying a home, and 44% said building equity/wealth was important when seeking out a home."
To learn more about the forecasted influx of first-time homebuyers from 2020-2022, click on the image above.