Millennials Huge Impact On The Housing Market
Many have overlooked millennials when analyzing housing market trends. The job market is still poor, and even those who do have jobs are often burdened by student debt. However, as the generation ages, their impact on the housing market has become more pronounced as the shrinking pool of buyers isn’t being refilled.
To some degree, the drop in homeownership is also a change in generational attitudes. This has led to the actual economic causes being disregarded for some time now. In addition to student loan debt, millennials are faced with a new job market where few can expect to stay with the same company for their entire career. Instead, they may be expected to move every few years to continue on an upward path, and this leads them to see purchasing a home as more of a liability and burden than an investment in their future.
It’s clear though, that not all millennials are delaying homeownership by choice. Three- in- ten people who carry student loan debt default on a financial obligation at some point, and this has caused lenders to be incredibly cautious when extending credit. College costs far in excess of starting annual salaries have also led to debt- to- income ratios that make lenders nervous.
Some have proposed easing credit standards or including additional factors like on-time utility bill and rent payments. If that happens, the percentage of the 13.3 million households led by millennials can be expected to shoot upwards and may finally pull the housing market out of its slump.
If you are in this group maybe you should think about buying a home. Things have loosened up and the time could be right. Apply below and let me give you a free analysis of your home buying ability.
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