Millennials have gotten good at many
things in today’s society like taking selfies and social media. Buying homes?
Not so much.
According to the Census Bureau only
36% of U.S. Citizens under the age of 35 own a home. That number is down from
42% as of 2007 and is the lowest level since 1982.
Nearly 90% of Millennials prefer
owning over renting according to a survey done by Fannie Mae. However, student
loan debt, strict lending standards and competition have made it very difficult
for young Americans to purchase a home.
Most Millennials simply cannot
afford to large 20% down payments and most others do not have good enough
credit to qualify for loans. Access to financing seems to be a large barrier
for younger people.
Debt Problems for Millenials
“Our problem is an obvious one — debt,” said
Mike Kennedy, a 32-year-old marketing director who lives in Northboro, Mass.
“My wife just graduated with her master’s and I’m still paying off mine.”
With nearly $50,000 in student loans
in debt, affording a home can be difficult when prices range up to $300,000
Several places are simply impossible
to afford. Cities like San Francisco, Los Angeles, and New York are simply too
expensive for the majority of people looking to buy homes.
Competition is so difficult for
young buyers because they cannot compete with older buyers who simply have more
money and can afford to pay in cash.
Thomas Bright of Richmond, Va., lost
in two different ways.
“When you are a first-time buyer,
you aren’t poised to compete with all-cash buyers,” he said.
Finding property can be a challenge
within itself, despite the housing bust that eliminated 20% off of home prices.
There are fewer houses to be sold on the market.
“Usually, the good homes go quickly”,
according to Richard Ernsberger, 34, an attorney who lives in Pittsburgh.
“I have been in the market for a
one- or two-bedroom townhome or condo for several months,” he said. “It seems
as though a good number of homes go within days of being listed.”
Josh Czupryk (29) an education
coach, and his wife Bailey Cato a teacher, (28) wanted to live in a safe
Memphis Tennessee neighborhood.
“Every one we looked at had a fatal flaw,” he
said. One house had a blighted one next door. Another had a completely paved
backyard.
Czupryk and Cato ended up finding a
4 bedroom home for $295,000. Fortunately for them, they did not have any built
up student loan debt..
“There is a ray of hope for young
wanna be homeowners”, said Fannie Mae’s Deggendorf. “Mortgage lending is
getting a little less tight, with lenders approving buyers with a little lower
credit score and who have less of a downpayment,” he said.
Millennials have gotten good at many
things in today’s society like taking selfies and social media. Buying homes?
Not so much.
According to the Census Bureau only
36% of U.S. Citizens under the age of 35 own a home. That number is down from
42% as of 2007 and is the lowest level since 1982.
Nearly 90% of Millennials prefer
owning over renting according to a survey done by Fannie Mae. However, student
loan debt, strict lending standards and competition have made it very difficult
for young Americans to purchase a home.
Most Millennials simply cannot
afford to large 20% down payments and most others do not have good enough
credit to qualify for loans. Access to financing seems to be a large barrier
for younger people.
“Our problem is an obvious one — debt,” said
Mike Kennedy, a 32-year-old marketing director who lives in Northboro, Mass.
“My wife just graduated with her master’s and I’m still paying off mine.”
With nearly $50,000 in student loans
in debt, affording a home can be difficult when prices range up to $300,000
Several places are simply impossible
to afford. Cities like San Francisco, Los Angeles, and New York are simply too
expensive for the majority of people looking to buy homes.
Competition is so difficult for
young buyers because they cannot compete with older buyers who simply have more
money and can afford to pay in cash.
Thomas Bright of Richmond, Va., lost
in two different ways.
“When you are a first-time buyer,
you aren’t poised to compete with all-cash buyers,” he said.
Finding property can be a challenge
within itself, despite the housing bust that eliminated 20% off of home prices.
There are fewer houses to be sold on the market.
“Usually, the good homes go quickly”,
according to Richard Ernsberger, 34, an attorney who lives in Pittsburgh.
“I have been in the market for a
one- or two-bedroom townhome or condo for several months,” he said. “It seems
as though a good number of homes go within days of being listed.”
Josh Czupryk (29) an education
coach, and his wife Bailey Cato a teacher, (28) wanted to live in a safe
Memphis Tennessee neighborhood.
“Every one we looked at had a fatal flaw,” he
said. One house had a blighted one next door. Another had a completely paved
backyard.
Czupryk and Cato ended up finding a
4 bedroom home for $295,000. Fortunately for them, they did not have any built
up student loan debt..
“There is a ray of hope for young
wanna be homeowners”, said Fannie Mae’s Deggendorf. “Mortgage lending is
getting a little less tight, with lenders approving buyers with a little lower
credit score and who have less of a downpayment,” he said.
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5104 South Westshore Blvd.
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info @ marcadislaw.com
(888) 547-1881
(813) 288-1881
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