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4 Common Misconceptions of Millennials and HomeownershipJuly 11, 2017
The millennial generation’s penchant for artisanal cuisine coupled with their apparent reluctance to invest, has been the source of much debate in recent months.
Who knew craft beer and cold brew coffee could spark so much controversy?
While older generations worry about the economic impact of these changes in spending habits, millennials are quick to go on the defensive, often citing student loan debt and increased cost of living as the culprit of their alleged financial woes.
But when it comes to homeownership, is it possible both sides of the generational spectrum are simply misinformed?
Warning: the facts may shock you.
Average age of first time homeowners
According to the National Association of Realtors®, the age of first-time homeowners has remained relatively stagnant over the past 40 years, shifting only slightly from 30 to 32.
Takeaway: millennials are entering the housing market.
20 percent down payment?
Saving up for a 20 percent down payment is a daunting, otherwise inconceivable, prospect for many renters and understandably so. The good news is, the average down payment in 2016 was just 11 percent. And as for borrowers under 35, the average was even lower at 8 percent.
Takeaway: don’t be discouraged by hearsay! Do your research!
Homeownership is no longer a one size fits all solution. In fact, there are many ways for renters to become owners, such as Home Partners of America’s lease-to-own program, crowd funding down payment strategies or even Metro Brokers Financial’s one percent down loan program.
Takeaway: make homeownership work for you. Where there’s a will, there’s a way.
A calculated investment
The role of homeownership as it relates to the American dream, or more specifically #lifegoals, has shifted according to many a millennial. However, that doesn’t render the once quintessential milestone irrelevant. On the contrary, millennials should take a vested interest in homeownership as a calculated future investment. As home prices continue to appreciate in under-developed urban neighborhoods, millennials have the opportunity to cash-in on these appreciating properties.
Takeaway: homeownership isn’t going anywhere. If anything, it’s evolving.