75 Percent Of Millennials May Never Be Able To Afford To Own A Home
Three-quarters of millennials may never be able to afford their own home mainly due to the economic hardship that generation has faced following the 2008 financial crisis.
An annual study by ApartmentList.com found that an increasing number of millennials do not expect to own a home and plan to “always rent.”
The percentage of this age group that expects to always rent has risen steadily to 12.3 percent in 2019, up from 10.7 percent in 2018.
Many millennials unable to afford a home
Around 69 percent of the millennials surveyed that expect to always rent said that they would do so because they are not able to afford a home.
Those who said they are planning to buy a home in the future also indicated that they were waiting because they cannot afford to buy right now.
A third of respondents said they were not ready to settle, while a quarter said they were waiting for a long-term partner.
The most alarming part of the study was the fact that student loan repayments were hurting millennials’ ability to save for a down payment.
Only about a quarter of the respondents said they will be able to put down a 10 percent down payment in the next five years.
Homebuyers often require a 20 percent down payment, which means that around 75 percent of millennials likely won’t be able to afford a down payment anytime soon if at all.
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Housing prices in the U.S. have been climbing steadily with first-time buyers paying 39 percent more than they were nearly four decades ago, according to Student Loan Hero.