The millennial generation is the largest one in US history, even larger than the baby boomer generation. You are considered a millennial if you were born between 1980 and 2000. This age of the population, has very different world views because they have grown up in a world filled with fast-paced technological changes, along with some great economic disruption. Millennials haven’t been eager to leave their parents home and many have found buying conditions difficult.
As Jed Kolko, Senior Fellow at the Terner Center for Housing Innovation, writes:
The share of young adults living with their parents increased in 2015…. One contributing factor is that 25-34 year-olds are decreasingly likely to be married or cohabitating with a partner, and – unsurprisingly – married or cohabitating young adults rarely live with their parents (just 2% do) compared with 31% of those who aren’t living with a spouse or partner. The decline in marriage among young adults is a long-term trend, pre-dating the recession.
But now is the time to buy!
Below are the top 3 housing concerns faced by many millennials. My hope is to help you see (if you are a Millennial) that these fears aren’t great enough to keep you from taking the plunge into homeownership.
The “Trust Crushing” Housing Crash
Many millennials have lived through a major economic disaster with the collapsing economy, their parents losing jobs which forced many of them to leave their comfortable homes for parts “unknown”. The psychological affect this has had on them has created trust issues, and that may be one reason that Millennials are in “no hurry” to buy a home.
The great news is that times have changed. The economy, especially here in the Greater San Francisco Bay Area, has rebounded nicely. This makes now an excellent time to consider homeownership.
Many Parents Can’t Afford College
While many parents suffered from an economic downturn, to make “ends meet” they blew through any college savings that had been set aside, just trying to stay afloat. This meant that many Millennials had to finance their own college education. They wanted a college education to be able to meet technological demands in their world, but mom and dad could often no longer provide that to them. So what then?
After graduation, these Millennials, who were just entering into the work force, ended up doing so with a “mortgage-sized” student loan having to figure out how to pay that back.
While financing another large purchase might be a scary step to take, it’s far more affordable to buy than to rent in many situations. Taking the time to understand the long-term benefits is something every Millennial needs to see in detail.
Economic Trend Fear
Millennials wonder where the world will be in 5, 10, and even 30 years, because so far, the trends they remember have not been economically positive. With the housing market crash, why would they want to invest in a thirty-year loan when it could crumble at their feet at any moment?
Helping Millennials understand the stability within today’s marketplace is the key to moving them from their parents’ home and into a home of their own.
Millennials have a completely different view of the world around them than their parents. They are slow to marry and move out, but that doesn’t mean they don’t deserve the American dream.
There is plenty to be optimistic about within today’s housing market, so take the time to find out why “now” might be the perfect time to actually “buy a home”. Contact me today!