Why Millennials Aren’t Owning Homes
September 19, 2018
As Millennials are becoming more established, analysts are eager to watch and see how their attitudes, lifestyle and buying habits are impacting the economy. One area of interest for our industry is Millennials migration pattern and home buying habits. Their actions can impact and drive surges in our business. Historically, Millennials, haven’t been as big on home buying as other generations, so it’s worth continuing to look at the whys behind the data to see what’s driving this behavior. 
Zillow recently releases a report that outlines why Millennials are struggling with homeownership and here are the main reasons why:
- The Down-payment
Saving for a down-payment has been cited as the biggest obstacle for renters right now. Reasons for this? The growing median home price and the need to put down 10% of that amount seems to be a daunting and moving target. Right now, if you compare the median income in the U.S. with how much you would need to save 10% for an average home, it would take a homebuyer more than a decade to save.
- Inventory
The total number of homes for sale nationwide has fallen year-over-year in every month for almost three and a half years! And, specifically low in the more affordable categories, like new homebuyer price ranges. In June, for instance, barely one in five homes on the market was an entry-level home.
- Wage Growth
On topo inventory and down-payment issues, wage growth for Millennials has also been a problem for many looking to buy a home. After making an adjustment for inflation, the average U.S. employee made 1.2 percent less in 2016 than they did in 2005. But recent college grads had it even worse, making 2.4 percent less. That’s why a number of Millennials are deciding to live at home with their parents.
- Living Situation
More than a quarter (28.2 percent) of U.S. college-educated twenty-somethings live with their parents. Which could explain why debt is high – it takes a solo earner a lot longer to save for a down-payment.
At Beltmann, we want to be your mover of choice. So, when you’re ready to buy and move onto your next adventure, we hope we can be your first call. Whether you’re a Millennial, Generation Xer or something in between – we have staff ready to help make your next move a reality.
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