Due to an expected increase in rent prices next year, Zillow predicts more millennials will enter the housing market and be the biggest homebuying group.
Zillow predicts the following for 2015:
• U.S. rents will outpace home values by the end of the year
• Builders will begin constructing more less expensive homes
• Millennials will overtake Generation X as the largest group of home buyers
• Home buyers will have more negotiating power in 2015
First-time home buyers will be a critical part of the housing market next year, and certain markets will have more favorable conditions than others for buyers looking for that perfect entry-level home, according to Zillow. Markets most favorable to first-time buyers are those with strong income growth among 23-34 year olds, significant growth in the number of entry-level homes on the market and home prices that won’t take a big chunk out of buyers’ paychecks.
Zillow predicts the best markets for first-time buyers in 2015 will be: Pittsburgh; Hartford, Conn.; Chicago; Las Vegas; and Atlanta.
Nationwide, home values will increase by 2.5 percent, while rents will grow around 3.5 percent.