The Housing Market's Impact on Millennials: From Deja Vu to Gen Z Hotspots

The housing market is resembling the 1980s, according to a report by the chief economist at First American. While mortgage rates are similar to those in the early 2000s, the overall market is more reminiscent of the 1980s due to high inflation, rising interest rates, and a surge of millennials entering the homebuying age. This could lead to a "housing recession" where home sales remain low and prices stagnate. However, the demographic demand from millennials could support home prices. Rising mortgage rates have already caused a drop in affordability and existing-home sales. Experts predict a potential frozen housing market and a possible collapse if rates remain high for too long.