Millennials, those who were born in the 1980s and 1990s, are beginning to fully transition into the home-buying market. It is harder than ever for the 66 million young people to afford a home but the market and their situation is not stopping them. The current young generation is slowly finding out the financial advantages of becoming a homeowner. Young people are buying homes or have a plan to buy a home in the future and here is why:
- They Do Not Want to be Defined by Debt
Most Millennials have a tremendous amount of debt from their higher educational experience. Their cycle of owing large amounts of money from student loans for college tuition has made them numb to the idea of debt. They are choosing to not be defined by money but by what they need to move forward in life. According to a Bank Of America report released earlier this year, 86% of Millennials also believe that owning a home is a long-term, affordable choice when deciding between renting or buying.
- They Value Having Stability With Personalization
Many Millennials are have already transitioned from renting to becoming homeowners with about ⅓ of young people already own a home. Personalization and ownership are something that young people value within their current technologically advanced culture. Home buying parallels their wants to create a personalized space for their own lifestyle. Whether it be the desire to have a stable job to afford a mortgage or stability just in their personal life, a home is the center of that stability.
- They Want to Have a Family
The Bank of America report also showed data that some of the top six priorities for Millennials include saving for a home, improving their credit score, and saving for their future children. For most, a reasonable motive to purchase a home is to create a space for a family and Millennials are no different that previous generations, in terms of family desires.
The youth are not shying away from the buyer’s market. Even within specific locations, preferences in home buying differ from area to area. Specifically, buyers on the upper east coast view their purchased home as a reflection of their personality. Millennials face major challenges of student debt, the “millennial stigma” against them, and obstacles entering the job market but it does not mean they will not move forward into the home buyer’s market.