Much has been written about the challenges that are keeping millennials — the largest-size generation in the country — from homeownership.

Much has been written about the challenges that are keeping millennials — the largest-size generation in the country — from homeownership.

But according to one lender, young people in their 20s and early 30s are maturing, forming households and flooding the housing market.

Endeavor America Loan Services, a national wholesale lending company, released a topical advisory this week compiled of data from its loan applications that indicates millennials may be fueling a housing boom that will shape the mortgage market in the near term.

Like the recent analysis of many other lenders, economists and market watchers, Endeavor noted that millennials still face significant obstacles to buying a home, such as:

  • A weak job market
  • Low-paying salaries
  • Inability to save for a down payment
  • Significant student loan debt
  • A delay in plans to establish households and families

But in surveying data from 2014 and early this year, which includes more than 5,400 millennial homebuyers in 49 states, Endeavor says the millennial mortgage market may finally be expanding as young professionals stabilize themselves financially, form families and put down roots.

“The headlines over millennials’ reluctance to enter the mortgage market represented one snapshot in time,” said Endeavor CEO Darius Mirshahzadeh. “Millennials are maturing, recovering from the recession and forming families. They also invested heavily in higher education and are growing in their careers. All of these factors point to what we are now seeing — millennials flooding into the housing market in a wave of first-time homebuying that will set a chain reaction of step-up home purchases and influence the mortgage market for decades to come.”

Forces like rising rents and improved job prospects are driving a real estate boom among millennials, Endeavor said. The lender noted that according to the Zillow Housing Confidence Index, about 5.2 million renters say they expect to purchase a house in 2015, an increase of 4.2 million a year earlier.

Endeavor’s data also revealed that more than 71 percent of millennials bought single-family homes; only 18 percent bought a townhome or condo.

On average, the borrowers in Endeavor’s data were around 28 years old, had a credit score of 664 and have been at their job for about three years. The gender breakdown was 71.5 percent male and 29.5 percent female, and around 54 percent of borrowers were married with less than one dependent. More than a third of borrowers had bachelor’s or graduate degrees.

The average loan amount was $182,879. More than 41 percent of borrowers used a co-signer to qualify for financing, and 20 percent received some form of assistance from a family member for their down payment.

Email Amy Swinderman.


Inman Connect San Francisco is right around the corner — register now and save $200!

Show Comments Hide Comments
Sign up for Inman’s Morning Headlines
What you need to know to start your day with all the latest industry developments
By submitting your email address, you agree to receive marketing emails from Inman.
Success!
Thank you for subscribing to Morning Headlines.
Back to top
Only 3 days left to register for Inman Connect Las Vegas before prices go up! Don't miss the premier event for real estate pros.Register Now ×
Limited Time Offer: Get 1 year of Inman Select for $199SUBSCRIBE×
Log in
If you created your account with Google or Facebook
Don't have an account?
Forgot your password?
No Problem

Simply enter the email address you used to create your account and click "Reset Password". You will receive additional instructions via email.

Forgot your username? If so please contact customer support at (510) 658-9252

Password Reset Confirmation

Password Reset Instructions have been sent to

Subscribe to The Weekender
Get the week's leading headlines delivered straight to your inbox.
Top headlines from around the real estate industry. Breaking news as it happens.
15 stories covering tech, special reports, video and opinion.
Unique features from hacker profiles to portal watch and video interviews.
Unique features from hacker profiles to portal watch and video interviews.
It looks like you’re already a Select Member!
To subscribe to exclusive newsletters, visit your email preferences in the account settings.
Up-to-the-minute news and interviews in your inbox, ticket discounts for Inman events and more
1-Step CheckoutPay with a credit card
By continuing, you agree to Inman’s Terms of Use and Privacy Policy.

You will be charged . Your subscription will automatically renew for on . For more details on our payment terms and how to cancel, click here.

Interested in a group subscription?
Finish setting up your subscription
×