Millennials and Homeownership… A Far Cry?!?

Even though there are record low mortgage interest rates and property prices are empowering millennials to invest in a property rather than rent. Unfortunately, 70% of Millennials believe that they’ll never own a home. Why? A study examining millennial views on home buying found the dream of ownership is still a long way off for many — with close to one in 10 (nine percent) saying they’ve already given up completely.

Millennials Buying Homes

As many as 70 percent of those yet to own think that, based on their current financial circumstances, it’d be difficult for them to get approved for a home loan. The dream of 10 percentage of millennials buying homes is one where they’ve given up already.

Millennials Delaying Homeownership

Millennials,  are renting longer, living with their parents, and are saddled with student loan debt. In short, it would seem they aren’t interested in homeownership.

But a new NerdWallet analysis that examined a number of surveys and data from government agencies and private organizations found many of these perceptions to be false. Our research showed that a majority of millennials would prefer owning to renting, but they appear to be postponing homeownership because of real and perceived difficulties in affording it.

Here are some of the facts on Millennials and home buying:

  • U.S. millennials total 66 million individuals and 24 million independent households.
  • The median age for first-time homebuyers has remained virtually unchanged for the past 40 years: In 2015 it was 31 years old, compared with 30.6 in 1970-74.
  • Two-thirds of millennials haven’t reached that homebuying age of 31, and 22% are under 25 years old.
  • Millennials are renting for a median of six years before buying, compared with a median of five years for renters in 1980.
  • Millennials are expected to form 20 million new households by 2025 [5].
  • The median income for a millennial older than 25 is $38,220

Those struggling with student loan debt may qualify for income-based repayment options or may be able to refinance their loans for a lower debt-to-income ratio.

What do Millenials Want in a Home? What are Millennial Housing Preferences?

A study in a New Home Source article lists everything that millenials want what everyone else is looking for in a home.

  • 2,475 square feet is what a majority would like to have.
  • Two-story homes (52 percent) and open concept floor plans (78 percent) were also preferences in NAHB’s research.
  • 81 percent said they wanted either three or four and two or two and a half baths.

The bottom line is this about millenials

Most studies in the real estate market predict nothing but a glum outlook when it comes to their homeownership prospects. With statistics like low savings, high student loan debt and lower credit scores are going to keep millennials from owning homes for the near future.