Millennials Face Homeownership Hurdles

By: Jorge Lopez, May 11, 2016

Homeownership has been the ultimate goal for a countless amount of years as people turn age 30 or start their families. Buying a home has been a major contributor to the U.S. economy’s foundation. However, it seems that the tides may be shifting among millennials, albeit just a bit.

Per the U.S. Census Bureau, less than 34 percent of people that are age 35 or younger are currently homeowners, compared to the 63.5 percent across all age groups. These numbers actually represent a decrease when compared to 2010 where homeownership among the 35 and under crowd was at 39 percent.

Of course it is important to note that the label of millennial has come to represent people between the ages of 16 to 36 so there is a substantial portion of people that are perhaps still a tad too young to be thinking about becoming homeowners. However, the decrease among the older crowds might raise some eyebrows.

There are factors that are making homeownership tougher for the millenial crowd. Nearly 70 percent of them are graduating from college with a significant amount of student loan debt, about $28,000. That number can make it harder for a millennial to qualify for a mortgage or even repay one for that matter.

Ultimately millennials would probably be purchasing homes in greater numbers if factors like job prospects, debt, and high home prices weren’t making it harder. Still, it’s something worth thinking about if you’ve ever wondered why so many of them are choosing to rent.

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