Q: Why aren’t millennials buying homes?
While New York and New Jersey real estate attorneys enjoy helping clients– especially first-time homebuyers—to buy a home, there is a noticeable decrease in the number of young faces coming through the door.
The percentage of so-called millennials – people between roughly the ages of 22 and 37 – who are buying homes has hit its lowest rate compared to the generations that came before them. In fact, as of the end of 2018, it was estimated that only 1 out of 3 millennials under the age of 35 were homeowners. In geographic areas where real estate is comparatively very expensive, such as New York City, the dream of homeownership may seem particularly out of reach.
Why aren’t millennials buying homes? As it turns out, being “overwhelmed” is a large part of the problem.
According to a recent study, this younger generation has lost sight of homeownership due to the following factors:
- lack of savings- 26%
- low income- 25%
- overwhelming student loan debt- 10%
- overwhelming credit card debt- 5%
- other debt- 6%
- poor credit- 17%.
Even the “historically low US unemployment rate” isn’t enough to offset the dual burdens of student loan and other debt and the shortage of high-paying jobs within the millennial demographic. Even as many millennials move back in with their parents in an effort to save up down payments or pay down debt, the credit card debt among their generation continues to rise.
Many first-time buyers for whom homeownership is out of reach at the moment, may more easily be able to afford to purchase a co-op apartment or condominium.
But it should be noted that not all millennials want to be homeowners, or at least don’t want to yet. Some prefer investing their money in experiences and having the ability to travel or relocate easily without the burden of a house and its costly maintenance. For them, renting a home or apartment works.
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Whether you’re looking to buy or sell real estate or rent an apartment in New York or New Jersey, the experts at Merlino & Gonzalez can help you. Contact us today to schedule a consultation.
From our offices in Staten Island, New York and East Brunswick, New Jersey, we represent clients in both states in all aspects of real estate law, as well as estate planning and estate administration.