We’ve all heard news stories that millennials are not buying houses. New household formations continue to be well below peak levels. Despite rents reaching astronomical levels in many areas, home ownership levels are not yet making significant gains. While many debate the timing, inevitably, many of the millennials who are currently renting will decide to take the plunge into home ownership.
Unlike many in generations before them, millennials also place a higher premium on flexibility and creativity. Economic factors have also placed this generation with the nation’s highest numbers of under-employment. These circumstances are leading many to self-employment and entrepreneurship. A survey by Harris Poll & Creative Live indicates that 47% of employed millennials want to leave the traditional work structure in favor of self-employment. For comparison, less than 9% of Baby Boomers and 8% of Gen X are self-employed. The potential increase in these percentages is simply astounding.
Will these two scenarios combine to make the largest group of self-employed borrowers our industry has ever seen? As many lenders are refining processes in preparation of peak purchase season, an even bigger event could be just around the corner.