As generation Y matures and boosts their buying power, their real estate activities may prove the boon the housing market needs, according to the University of California's Lusk Center for Real Estate.
Gen Y is comprised of 15 to 32-year-olds and boasts roughly 7.4 million members. They are the largest segment of the population next to the population bursting baby boomers, who are now entering their golden years and range between the age of 46 and 64, according to The National Association of Realtors.
Baby Boomers and Gen Y kids make up 50 percent of the American population combined. And while Gen Y is nearly as large in number as the boomers, they are more diverse and better educated, as 60 percent of this budding populace goes the undergraduate route, according to USC.
While the current housing market offers a glut of vacant properties and prices that may not have bottomed out at present, Gen Y is set to change that picture dramatically over the next ten years. In 2010, 4.3 million Gen Y individuals turned 22. With millions entering the workforce, the housing demand is sure to rise, the source reports.
While their potential to influence real estate trends and mortgage rates may soon be palpable, USC predicts that these up and comers will be far more practical when it comes to delving into home ownership - and home loans - after the real estate downfall in 2008.
"These kids are concerned," said Lusk Center chairman of the board Stan Ross. "They have watched the stock market financial markets and economy wipe out their parents' retirement plans. As a result, they will choose lower-risk investment strategies."
Current Gen Y housing statistics show relatively equal variations across types of residences. While a slight majority - 37 percent - currently rent their homes, 35 percent are already homeowners. Another 26 percent live with a parent, relative or in college dormitories, according to USC.
Real estate agents who are aware of the imminent housing shift have begun marketing to twenty-somethings in a bid to harness their buying potential and boost mortgage applications. Much of the home selling sector is adapting to the times and pushing online services, according to USA Today.
"This younger generation is so technology-savvy and because of that, they are changing the way real estate is being marketed and how brokers must use technology to successfully get to this group, " New York Realtor Jacky Teplitzky told the news source. "This demographic is so important."