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SANTA ANA, CA—“Given Generation X has a high homeownership rate, and Generation Y is expected to as well, I would expect nothing different from the youngest generation,” First American Financial Corp.'s chief economist Mark Fleming tells GlobeSt.com. As we recently reported, ccording to a recent report from the firm, increasing educational attainment indicates the prospect for higher income levels and homeownership demand among Millennials.

Homeownership does tend to be a local issue, Fleming says. “While the national homeownership rate declined modestly in 2016, homeownership rates varied significantly at the market level. Small changes in potential homeownership demand hide the large amount of variation in markets across the country. The underlying factors that the Homeownership Progress Index accounts for can vary substantially by region of the country and market. Regions or markets with stronger local economies and that can attract increasingly educated Millennial households will have stronger homeownership demand in the future.”

In addition, he says, half of the top-10 markets for year-over-year growth in potential homeownership demand are in either California or Texas, while eight of the bottom 10 markets are on the East Coast or in the Midwest.