I've been both a Seller's and Buyer's agent for over 25 years...27 to be exact. There is a trend that I've been noticing for a while - that trend is fewer and fewer under 30 are getting into the real estate market.
So, I did a little research and came up with a few reasons why that might be:
- Millennials have staggering levels of student debt
- Millennials only see doom and despair associated with the housing market; they experienced the Great Recession firsthand and the housing meltdown
- Millennials value mobility, not looking for roots, in terms of homeownership
- Millennials' vision of financial freedom is being debt-free, not leveraging
- Millennials are getting married and having children later...so, no need for the house
- Some just stay flexible to concentrate on careers
All is Not Lost
If you're a millennial, here are a few ways to ease yourself into the real estate market:
- If you are currently living at home, take advantage of the time and save up for a small down payment. It doesn't have to be large.
- Work with a loan agent who is familiar with low to no money down loans. Those loans do exist. You just have to look for them.
- Have a family member invest in your future and be a co-equity owner or have a down payment gifted.
- Homeowners can take advantage of tax breaks not available to renters.
- Generally, home values tend to increase in the long term, therefore building equity in later years.
- The options of housing stock are greater now than before: smaller homes, multi-family, condos, live/work options, etc.
There's no doubt that home ownership is at an all-time low. As with most things in life, it's cyclical. Can you continue to shell out your hard earned dollars for rent with nothing to show for it? Do what I did. I bought a home that had an option to rent out a portion. My motto has been, "I'd rather have someone else help me pay my mortgage!" Sounds good to me. What about you?
Interested in Owning a Home?
If you are interested in learning more about home ownership, contact me.
Ken Molina 808.344.6421 firstname.lastname@example.org