Will Millennials Be Able To Buy Houses? 10 Facts
According to recent statistics, millennials became the largest group to own houses over the past two years. None the less, they lag a little behind where previous generations were at a similar age. This, however, does not mean that millennials are lazy or unmotivated. Millennials are faced with the sharply inflated prices of homes compared to other generations. Among other reasons let us look into detail if millennials will be able to buy houses.
Debts
Millennials are the largest group said to have gained help from student loans in college. They spend their better time in adulthood trying to repay the loans which postpone their ability to buy houses. None the less, loans will not be paid over a lifetime and eventually, their salaries will be expected to increase while the debts decrease paving way for the probability of eventually buying a home.
Affordability
Today, houses and apartments have become too expensive to buy at a go with cash whose wages are not increasing at the same rates. There are no more low priced homes due to the population increase that came in with the millennials. On a positive note, a significant number of millennials have been able to gather a standard amount of money required for down payment as they pay the rest of the balance during their lifetime. Although most opt to rent houses during the early twenties, buying a house is definitely a plan in mind.
Other Generations
Other older generations are not freeing up preferred space for the millennials. Many boomers still live in urban condos or suburban single-family homes as even second options from their main homes and in which these are the popular choices for millennials. But in the end, it is a dream to own a house for a millennial despite the frustrations.
Employment
Despite the hard economic times in the past and a steady injection of millennials into the job market corresponding to the population growth, unemployment rates have declined by 4.1 percent. There have been records of steady gains in the healthcare, manufacturing, and construction industries which could help equip millennials to plan for house purchases.
Rents Vs Own Purchase Analysis
We might quote once again that millennials have the largest educated population that makes them understand the house market analysis better. The renting option may serve in the short run but in the long run, terms, purchasing your own house will save you money. Let bitgale.com lead you through the best house arts that will serve you for ages before you consider renovating or purchasing a new house altogether.
Standards Of Living
Millennials have been raised with little struggle and a standard quality of life. For this reason, millennials strive to even get better and purchase better homes for their kids than what was provided by their parents. Millennials will stop at nothing until they own a nicer permanent home for their families.
Have Control Over What You Do In Your Living Space
Remember when you couldn’t host birthday parties because the landlord was strict with noise and music limits? Or when you wanted to sleep the whole weekend because you have had a rough week but your siblings and parents couldn’t let you? Millennials crave for their own space as much as anyone else would. This gives them enough reason to struggle through part-time and full-time jobs in order to purchase houses and gain control over their spaces.
The Art Of Saving
According to statistics, currently, millennials are in the best position to start saving and actually keep up with the saving culture. This is because, most millennials do not have many financial responsibilities apart from the common basic needs such as clothing, food and shelter compared to other generations who are investing for retirement needs and probably paying college fees for kids. The art of saving makes millennials the best candidates which in turn will help them purchase houses with more ease.
Inheritance
Most millennials are beneficiaries of inheritance especially in shares among family businesses, firms, and corporations put up by previous generations. Even if the inheritance is not passed down in time when they are struggling, eventually they will receive enough funds to start the partial purchase of a permanent home. This, however, does not apply to all millennials but a significant number is expected to source funds for house purchase from inheritance.
Population Factor
Most home marketers already know that millennials occupy the largest population, especially in urban regions due to proximity to their places of work. For this reason, home marketers are developing fair plans and rates for the millennials to purchase houses comfortably without struggling. The down payment plans have been cut down to rates that are affordable to the average millennial.
All facts mentioned above highlight the ability of millennials to eventually purchase a house and their desires attached to owning permanent residence.