LAKELAND, Fla. — It finally happened. Millennial homeowners outnumber renters who are millennials for the first time ever, according to a recent study from RentCafe.com.
Florida millennials also joined the throng of homeowners, with some of the fastest-growing areas of millennials homeownership happening right here in the Tampa Bay area.
According to the study, about 52% of millennials in the U.S. – considered to be the largest generation -- are now homeowners in 2022. Despite a global pandemic and skyrocketing home prices, RentCafe says over the last five years homeownership among millennials has surged to an all-time high. Millennials have outpaced Boomers and Gen Xers in those years, although both older generations still own more real estate overall.
“The number of Millennial homeowners increased by 7 million in the last five years, more than triple the number added by Gen X, who came in second,” the study said.
This means that 18.2 million millennials were homeowners in 2022. Still, Baby Boomers and Gen Xers who owned homes in 2022 totaled 32.1 million and 24.4 million, respectively.
Florida may be known for its robust retiree population – although according to at least one study, the Sunshine State is no longer No. 1 – but millennials are flexing their buying power in the housing market.
You can see that happening right here in the Tampa Bay area.
When looking at the Top 50 metro areas in the U.S., Tampa saw a 57.4% growth in the number of millennial homeowners. But it’s not just large metro areas seeing the most growth.
RentCafe.com’s study highlighted North Port, saying that nearly 71% of millennials living in this metro area were homeowners in 2022 – that’s an increase of more than 804%. Similarly in Lakeland, while only 39% of millennials own homes, the area saw a more than 507% increase. Nearby, Fort Myers and Orlando also saw huge percentage jumps in millennials buying homes.
Still, homeownership is likely to remain a pipe dream for many Americans this spring homebuying season.
The nation’s worst housing slump in nearly a decade stoked hope among prospective buyers that homes could be scooped up more easily. But while prices appear to have peaked last summer, they still ended 2022 higher than they were at the end of 2021. And the median U.S. home price has increased 42% since 2019.
A series of interest rate increases by the Federal Reserve last year is making matters worse for homebuyers, pushing mortgage rates to their highest level in two decades.
The Associated Press contributed to this report.