Millennials & Home Buying
August 18, 2017 |
What can we expect from Millennials and home buying? They are not rushing to own a home anytime soon. Let’s take a deeper look as to why.
Millennials Haven't Been Saving Like There Parents Did
In some cases, it is not that Millennials don't want to buy a home, it is that they cannot afford to. They are saving significantly less than older generations. Their spending is different compared to older generations, too. You will find Millennials
spending more money on happy hours, traveling and boutique fitness classes than any generation before. All of this money going to entertainment cuts significantly into their savings.
Student Debt Is Huge
There’s no doubt with the rising costs of education Millennials suffer more from student debt than their parents did. If you are up to your waist in debt it makes it extra difficult to take on a mortgage loan needed for a house.
Housing Is Less Affordable
Compared to the overall population housing is less affordable for Millennials, who suffer from more student debt and are fresh in their career. There is a shortage of entry level homes in the country, and those are the places that Millennials are realistically
be able afford. To make matters more difficult, Millennials are competing against repeat buyers who have more leverage and experience.
All of this being said, Millennials are part of a determined generation. If they decide that a home is in their five year plan, they will find savvy ways to save extra money, spend less and make it happen.
**Note, not all Millennials are following the trends above. This is based on what we have seen and read. We know there are many people who are outliers to our claims.**