American Dream of Homeownership Being Delayed

By
Real Estate Agent with Brown Realty, 210-789-4216,www.JeremiahNewman.com TREC #0492321
https://activerain.com/droplet/5gNf

The American Dream of Homeownership is being delayed by many millennials according to the latest 2018 Report on Millennials from Apartment List. The majority are not prepared to purchase a home this year, and will remain renters until they are qualified to move forward.

  • 89.4% of millennial renters say that they plan to purchase a home at some point in the future, but just 4.4% expect to do so within the next year, while 30.4% percent say that they won’t buy for at least five years.

  • Of those millennial renters who plan to purchase a home, 48% have zero down payment savings, while just 11% have saved $10,000 or more.

  • We estimate that 67% of prospective millennial homebuyers will need more than two decades to save a 20% down payment on the median priced condo in their area, while just 11% can save a down payment within the next five years.

If you’re thinking or planning to purchase a home this year, call Jerry today at 210-789-4216, and let’s discuss the steps that you’ll need to take to make your Dream of Homeownership a reality. Take a look at my website for Homes in and Around San Antonio that might fit your real estate needs.

Photo image of chart provided by Apartment List.

 

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Texas Bexar County San Antonio
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Rainmaker
455,644
Michael Eisenberg
eXp Realty - Bellingham, WA
Bellingham Real Estate Guy

Many apartment dwellars are unaware that they may qualify to buy a home, they are just not well enough informed.

Jan 28, 2019 01:02 PM #7
Ambassador
1,151,609
Jerry Newman
Brown Realty, 210-789-4216,www.JeremiahNewman.com - San Antonio, TX
Texas REALTOR, San Antonio Military Relocation

Yes, Michael. It can certainly be a target group for us to educate. 

Jan 28, 2019 01:37 PM #8
Rainmaker
235,758
Monica Hill
RE/Max Associates - Wilmington, DE
the REALTOR to help you discover Delaware

Interesting numbers. It's a whole new world now. Job security isn't what it used to be and many people don't plan on longevity with a particular company. If their earning future is uncertain, it's understandable that they might not want to be locked into a longer term commitment. Good time for us to educate buyers about purchasing within comfort levels, not necessarily approval levels. 

Jan 28, 2019 05:43 PM #9
Rainmaker
255,143
Susan McCall, Independent Listing and Buyer Agent
Compass Realty Solutions - Portland, OR
Bringing buyers and sellers together!

Hi and thanks for the great article .  With the rents/leases in our area  at the level they are there would be a large number of renters that could afford PITI.  And according to your post 20% is required as a down payment.  In my 20 years in the realty business most of my buyers are somewhere between 3 and 12%.  Pssst, I have aa secrret, there are many 0 down loans.

Jan 28, 2019 06:02 PM #10
Rainer
216,943
Greg Mona
Faira Homes Corp - Scottsdale, AZ
Real Estate in the 21st Century!

Thanks for the informative post Jerry Newman .  I was surprised by the results. While I do know how difficult it is for that generation to save enough for a down payment being saddled with student loan debt, high rental prices, etc., That said, there are several favorable low to (almost) no money down loans they may be able to qualify for with good credit. With that available to them, I would have thought more than just four percent are planning to buy in the next year or so. It's a tough go for that generation and the dream of homeownership. I hope something shifts for them soon.

Jan 28, 2019 06:15 PM #11
Rainer
237,444
Randy Elliott
RE/MAX Gold - Lodi, CA
REALTOR : Lodi / Stockton, CA

Nice post! What this tells me is that the good news is 1/3 of millennials will be buying within the next 3 yrs.  I'm good with that.  ;-) 

Jan 28, 2019 06:23 PM #12
Rainmaker
456,869
Diana Dahlberg
1 Month Realty - Pleasant Prairie, WI
Real Estate in Kenosha, WI since 1994 262-308-3563

Great statistics

Jan 28, 2019 07:36 PM #13
Rainer
416,441
Rose Mary Justice
Synergy Realty Pros - Dandridge, TN
Synergy Realty Pros

Congrats on your feature.  The stats were very well executed.  

I feel Renters need to be better informed and prepare for their future. We cn convert the ones that are willing to work on their credit etc. We have options for no money down loans in our area.

Jan 28, 2019 07:54 PM #14
Ambassador
894,388
Lynn B. Friedman
Atlanta Homes ODAT Realty Call/Text 404-939-2727 Buckhead - Midtown - Westside -- and more ... - Atlanta, GA
Concierge Service for Our Atlanta Sellers & Buyers

Jerry Newman 
Well-done post with great information. I love reading your opinions because you back up what you say with data! Thanks - Lynn

Jan 28, 2019 11:17 PM #15
Rainmaker
3,194,302
Endre Barath, Jr.
Berkshire Hathaway HomeServices - Beverly Hills, CA
Realtor - Los Angeles Home Sales 310.486.1002

Jerry part of the problem is when I was a kid it was OK to have sneakers, did not need the $500-$1500 name brand sneaker... when I was a kid my parents told me be home at such and such a time, I did not have an $800 Samsung phone or an Iphone... just asked people on the street what time it was... so now there are a lot of what I call must have don't need and that takes away from the ability to save for a Down Payment....

Jan 29, 2019 12:27 AM #16
Rainer
282,121
Ron Aguilar
Continental Mortgage - Saint George, UT
Mortgage & Real Estate Advisor since 1995

These younger generations want instant gratification. When some of us were younger we had the same problem. How many people did we know that bought a home before they were age 21? 

Jan 29, 2019 06:26 AM #17
Rainer
7,307
Blair Warner
Upgrade My Credit - Arlington, TX
Certified Credit Consultant

Those are some great stats to know. Thanks!

Jan 29, 2019 07:03 AM #18
Rainmaker
334,913
Dana Basiliere
Rossi & Riina Real Estate - Williston, VT
Making deals "Happen"

Hello Jerry,

Good stats. Yes we are seeing some young folks delaying home purchasing.  Some of the ones I have talked to have huge college debt and are paying it down first. 

Jan 29, 2019 07:14 AM #19
Rainmaker
251,068
Doug Kaller
Academy Mortgage, Reno, NV - Reno, NV

The Fannie Mae “HFA Preferred” program is the answer for many of these potential homebuyers. The program requires just 3% down, and allows DTI ratios as high as 50%. There isn’t any upfront MI and the monthly MI can be cancelled after 2 years with 25% equity. There is also a substantial savings on mortgage insurance. The amount of coverage required on a regular 97% conventional loan is 35%. That drops to 25% with HomeReady and all the way to 18% with “HFA Preferred”. Also, many state programs combine “HFA Preferred” with down payment assistance and mortgage credit certificate programs.

Jan 29, 2019 11:07 AM #20
Rainmaker
384,750
Kona Home Team (luva llc) Lance Owens (RS)
Kona Home Team (luva llc) - Kailua-Kona, HI
Getting transactions done, when nobody else can!

Alohaaaa Jerry 
Been a long time my friend, great blog, good to see you still helping out your cleints so much !  
Have a great 2019 
Aloha and Mahalo 

Jan 29, 2019 12:29 PM #21
Rainmaker
3,795,055
Dorie Dillard CRS GRI ABR
Coldwell Banker United Realtors® ~ 512.750.6899 - Austin, TX
Serving Buyers & Sellers in NW Austin Real Estate

Good evening Jerry Newman ,

Congratulations on the well deserved featured post. Endre Barath, Jr. has a point..hard to save when your busy buying the "must have" luxury items.

Jan 29, 2019 05:55 PM #22
Rainmaker
509,046
Mary Hutchison, SRES, ABR
Better Homes and Gardens Real Estate-Kansas City Homes - Kansas City, MO
Experienced Agent in Kansas City Metro area

It is extremely difficult for this age group to save for a down payment on a house, when they also have student loan payments, car payment and wages do not, and will not ever, keep up with inflation.

Jan 30, 2019 08:46 AM #23
Rainmaker
1,826,677
Michael J. Perry
KW Elite - Lancaster, PA
Lancaster, PA Relo Specialist

What will compound this dilemma could be rising Interest Rates ????????

Jan 30, 2019 10:20 AM #24
Rainer
475,289
Kimo Jarrett
WikiWiki Realty - Huntington Beach, CA
Pro Lifestyle Solutions

Unfortunately, most millennials are addicted to self gratification and lack any discipline to be frugal. Many of these people IMO haven't been informed or taught either by their parents or school educators about how money works. The ease of securing credit to buy now and pay later drives up their monthly debt service that leaves them with no money to save. Is this the future highway to socialism? Hopefully not!

Mar 03, 2019 09:38 AM #25
Ambassador
1,151,609
Jerry Newman
Brown Realty, 210-789-4216,www.JeremiahNewman.com - San Antonio, TX
Texas REALTOR, San Antonio Military Relocation

Let's hope that it doesn't lead us into Socialism. This is not what America is all about. It has always been a place where Dreams can come true. 

Mar 04, 2019 08:14 AM #26
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