Why Aren’t Millennials Buying Homes More Frequently?

The one objective truth about the real estate market is that it is never going to stay the same for long.

There is an intresting trend happening in real estate: As Millenials, we are taking longer to invest in our first home than our parents did. 

6 years is what the average first-time home buyer rents for, before making the investment. Up from 2.6 years in the early 1970’s, according to Zillow.

CNBC realesed a video on the topic. To save you some time, here are my top three takeaways from the video. 

1. Down payment is a BIG factor

Renters in today’s market are struggling to save for down payments and qualify for mortgages. Most first-time buyers still depend on personal savings for at least some of their down payments, but rising rental prices have complicated the task of socking away money for a down payment.

2. Rent is rising and not helping 

Rental rates are causing 46% of renters aged 25-354, to spend more than 30 percent of their incomes on rent, up from 40 percent a decade earlier.

3. Job security is important to millennial buyers

The Money Source, a mortgage lender, examined applications from 5,404 millennial buyers and found that these buyers averaged nearly 4.5 years in their field of work and had held their current job for slightly more than three years. Those figures point to how critical career stability is to a younger generation.

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