To be a homeowner, or not to be a homeowner – was never the question. Rather, it’s been how to be a homeowner.
According to the Urban Institute’s Millennial Homeownership report, the homeownership rate for millennials is 8 percentage points lower than for Gen Xers and Baby Boomers when they were millennials’ ages. Their report estimates that 3.4 million more people would be homeowners if the rate of ownership kept pace with previous generations.
There are multiple factors that are causing Millennials’ to pause moving forward with homeownership. The report suggests that it takes only a 1% increase in a person’s student loan debt to decrease the likelihood of buying a home.
Millennials are also delaying marriage and renting longer than previous generations. Rent-burdened comes to mind; Millennials are rent-burdened when they’re spending more than 30% of their income on housing.
While there are many hurdles Millennials are having to jump through to become homeowners, remote-work seems to be helping them make the big decision.
Generations are always different – we’ll continue to monitor how the market changes.
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