Millennials are now the largest part of the workforce. But they differ from the Baby Boomers they took over from. Millennials are not aiming to buy a home. They’re choosing to spend their money elsewhere. We’re going to take a look at why fewer millennials are buying homes than their Baby Boomer parents and grandparents.
The Banks Aren’t Lending
Since 2008, it’s harder than ever to get the money you need to get on the housing ladder. Banks won’t lend to young people unless they have a perfect credit record and a good job. The reality is many millennials aren’t in this position yet, so they have to wait, and some just get used to the idea of renting.
Experiences Over Things
The way millennials think is different. They’re focusing on experiences over things. They’re interested in spending their money on things that are going to give them great memories. Fewer millennials are focused on owning assets for the future.
Many millennials simply aren’t interested in saving for a home right now.
Home Ownership is Too Much Hassle
Some millennials are simply not interested in taking on the responsibilities of home ownership. They don’t want to pay for maintenance and they don’t want to incur the extra taxes. The truth is they’re more interested in focusing on their careers and on having fun.
For them, responsibility is something they can manage later.
Real Estate is too expensive
Real estate in many states is unaffordable, even with a mortgage. Take many parts of California as an example. Someone with an entry level job can never hope to come up with the deposit here. And situations like this turn off many millennials entirely.
But if they looked a little harder they’d find some fantastic deals. Take real estate in Texas as an example. Texas has some of the most affordable real estate in the country, but many millennials assume that because it’s a rich state real estate isn’t in their league.
Millennials Leave It until Later to Start a Family
Baby Boomers often bought homes because they wanted to start a family. Starting a family at a young age isn’t as common as it once was. Millennials don’t need a three-bedroom house when they’re single or enjoying casual relationships. Both men and women aren’t starting families until they hit age 30.
With millennials leaving it so late, there are fewer of them thinking about getting on the housing ladder at a young age. And that’s not a trend that’s going to reverse itself anytime soon.
Last Word –An Irreversible Trend
Millennials in Texas are buying homes later for a variety of reasons. But it’s also because renting has become more acceptable than ever before. The way people think about home ownership is completely changing, and it’s an irreversible trend. The age people buy their first home is only going to increase.
What do you think is the biggest reason why millennials are not buying homes as their parents and grandparents did?