A new TransUnion analysis found that among the 55% of non-homeowners looking for a home loan, 3 in 10 were millennials. That share is up slightly from 2016 and continues the upward trend of recent years.
The figures reveal that 34 million renters aged 25-44, a prime age for home purchase, were credit eligible for a mortgage with two thirds of under 44’s having a VantageScore 3.0 credit score of 580 or above.
While the report is good news for many in the housing market, landlords could be facing a slowdown following a period of growth.
“The rental market has seen sustained growth for the last several years, but occupancy rates have flattened from their peak in the second quarter of 2016,” said Mike Doherty, senior vice president of TransUnion’s rental screening solutions group.
Doherty says that landlords need to consider what they can do to retain tenants. This includes reporting their rental payments to credit bureaus with 51% of TransUnion survey respondents saying that would be a deciding factor in choosing a rental home.
“This new uptick in mortgage shopping could be a precursor to further declines in occupancy, which would impact rent growth – and ultimately, revenue – for multifamily property owners,” Doherty said.
More market update:
Renters made up a large share of those shopping for a mortgage in the first quarter of 2017, which could put landlords under pressure.