Millennials and Home Ownership
You may have heard the millennial generation will be the first to never own their own home. However, there are many valid reasons why young people should consider purchasing a home in today’s market. CNBC says millennials simply aren’t buying houses now — they’re urban, mobile, bogged down with college debt and averse to risk. In fact, they’re being dubbed “generation rent.”
Home buying doesn’t appeal to millennials — defined as those born between 1980 and 2000 — as it does to other age groups. Why? They’ve lived through the recession, saw what it did to their families, and came out of college in debt with one of the lowest employment rates ever. So it’s safe to say they’re a little jaded about such a big investment as a house.
Why Millennials Should Become Homebuyers
The last decade has seen more and more college grads heading back to live with mom and dad. However, the current outlook shows them emerging from their parents’ basements and becoming a part of the economic upswing in this country. According to Demand Institute, there are about 13 million households headed by millennials. This number is expected to grow to more than 26 million by 2018, with spending on rent and home purchases projected to skyrocket to $3 trillion.
This is higher than any other generation ever spent on a per-household basis. Despite all the negative reports about millennials and their view of the future, their view is actually quite bright, with many planning on improving their housing situation in the next five years. That could include moving into a bigger apartment or condo to rent, or it could mean purchasing a home for the first time. First time home buyers in Arizona will soon find themselves on the hunt for more spacious living quarters in which to raise a family — despite that the majority of millennials are still single and the marriage rate has been declining slowly for years.
So what is spurring the fact that many millennials are still not buying homes at the rate of former generations? CNBC speculates it’s due to lifestyle changes, credit availability, the rise in unemployment and the tendency to get married and have children later in life — these last two factors are big ones when it comes to the decision to buy a home.
Many millennials may also be skittish about dipping their toes in the warm waters of the housing industry. But getting the right help throughout the home buying process is key to alleviating those fears. That’s why it’s important for those young people to seek out a trusted mortgage lender for assistance. From the initial consultation to your pre-qualification, let the team of Arizona mortgage brokers at Marquee Mortgage guide you through the home buying process. At Marquee Mortgage, our experienced team has the skills and expertise to land you the best possible rate. Contact Marquee Mortgage today, and let our team make your dream home a reality.