Millennials emerging from the pandemic with extra savings are putting that money to use in the housing market.
“A lot of millennials, through the pandemic, actually moved home with their parents and saved a lot more money,” CJ Dalton President Taryn Byron told Yahoo Finance Live. “They weren’t going out and spending discretionary income because there was really nowhere to go. So all of that additional savings helped millennials, and now they have a big COVID piggy bank.”
In turn, they used some of these savings to purchase homes. A Redfin survey found that 31 percent of millennials credited extra savings from the pandemic with allowing them to afford their down payments.
Millennials will likely need those savings when entering the housing market in 2021. The S&P CoreLogic Case-Shiller national home price index rose 13.3% in March from last year, far outstripping economists’ expectations.
[Read more: Home price growth in the US surged at a record pace in March]
