Homeownership – it’s the American dream. Right? It may be, but according to the National Association of Realtors, first-time buyers are down 30 percent from just a year ago. Millennials, fresh out of college and new to the job market, seem to be either disenchanted with the “American dream” or just not ready for it. Here’s why:
Different Priorities – The millennial generation is unlike any other. They are bucking tradition, and doing things a bit differently. Often delaying marriage and children (in some cases by more than a decade), many millennials are focusing on their careers, looking to travel, and aren’t quite ready to “settle” down.
Student Loans – It’s no secret that the amount of student debt is steadily increasing. In fact, according to data from the National Postsecondary Student Aid Study, the graduating class of 2015 is the most indebted class in American history. They study shows that the average debt per borrower has more than doubled in the last 20-25 years.
Thus burdened with more debt than any other generation right out of school, it shouldn’t come as a surprise that millennials aren’t jumping into another major financial decision of buying a home.
Underwater Mortgages – As the economy recovers, and the housing market starts to make a comeback, there are fewer underwater mortgages. However, the most affordable houses, which are the houses first-time home buyers are after, are ones that are underwater. Current owners of houses with underwater mortgages aren’t keen on selling, which limits choices and raises competition within the market.
All blog information is of the opinion of the Loan Officer and is not supported by Fairway Independent Mortgage Corporation
