Common Myths About Millennial Home Buyers
When it comes to home buying, Millennials are among the most misunderstood generations. There are many myths surrounding this generation of buyers who have outpaced Baby Boomers as the largest generation. Whether or not Millennials are likely to want to buy a house is a common source of disagreement. It may surprise some to know that many Millennials are active home buyers, some are homeowners and that group is growing all the time.
Millennials Want to Be Renters
It's said that Millennials don't want to be home buyers, they want to be renters forever. Part of this myth stems from Millennial challenges like unwieldy student debt and limited housing supply. Many Millennials also delay getting married and having children to focus on their careers, so many of them put off buying homes. That said, Millennials homeownership rate increased dramatically from 34.7% to 36% in the final quarter of 2017. In fact, it's said that Millennials are the reason that homeownership rates increased in 2017. The older Millennials are buying homes now, and many who can't at the moment hope to buy one in the future.
Millennials Can't Afford a Mortgage
Many assume that Millennials plan to stay renters forever because they simply can't afford to have a mortgage. In reality, mortgages are more affordable than rent in 42 states. Millennials who want to save money and invest in their future can do so by buying a home.
Millennials Can't Afford Down Payments Because of Student Debt
For many Millennials, a 20% down payment is not realistic. Many Millennials do have student debt and other expenses that make saving large sums of money difficult. However, for those who are unable to afford the down payment for a conventional loan, FHA's 3.5% down payment requirement makes purchasing a home more realistic. Millennials who want to know more about getting an FHA loan should work with an FHA approved lender to find out more details.
Millennials Only Want to Live in Cities
The NAR reports that the number of Millennials buying homes in urban areas is decreasing, even though the number of first-time Millennial home buyers is on the rise. The reality is that Millennial homebuyers are purchasing homes in suburban areas such as Mancos. Millennials like the space, convenience and access to shopping, family and friends that they can get from suburban homeownership.
Are You A Millennial Home Buyer? Contact A Reputable Real Estate Agent Today
If you're a Millennial home buyer who would like start your search for a new home, work with a reputable real estate agent. Your agent can help you identify homes that meet your budget and fit with your lifestyle.