“We Wanted a Home More Than Anything Else” – How Millennials Are Coping with the Hot Housing Market
Admin
Published Date: 2023-11-29
The boomer generation seems to keep harping on millennials and their inability to buy a house or “settle down” like they did back in the day. The problem is that we’re not “back in the day” anymore.
There was a story floating around social media not too long ago demonstrating this exact point. A young man had graduated college and was working at a power plant in the same role his father had, making a comparable salary. His father was able to buy a house and support a family on that salary.
This young man can’t even make rent.
The story is the same for so many young people right now, leaving them with no other choice than to keep trying to rent despite rising housing costs and a severe lack of inventory.
Then, there are those who are ready to buy a home. They’ve saved money, gotten approved for financing, and found the home of their dreams. But so have ten other first-time buyers, and now a bidding war ensues.
This results in one person paying more than they should for the home and everyone else being left high and dry, desperate to get their hands on a home of their own.
How are millennials coping? All in all, not well.
• 18% of millennials say they intend to rent forever.
• 51% say student loans have kept them from being able to purchase a home.
• At age 30, only 42% of millennials own homes, compared to 50% of baby boomers at age 30.
For Those About to Buy
Those who can afford to buy aren’t looking at cheap homes. They have higher median earnings and are seeking homes with high-end furnishings and features, technology and smart upgrades, and more. Millennials are more likely to purchase new construction to get these perks, and where rates and financing are often more flexible.
Final Thoughts
The bottom line? Millennials are set to change the housing market for good, one way or another. While many are settling for furnished apartments and rental houses, some are just waiting longer to buy so that they have the financial means to do so comfortably. And when they travel, they’re more likely to choose corporate apartments and short-term rentals than hotels, craving that at-home feeling no matter where they are.
