While the financial crisis of 2008 has certainly passed, the housing market hasn’t fully recovered. The economy may be far better, but the housing marketing hasn’t had as much to do with it as one might think.
Many are expecting a new wave of home buyers from the millennial generation to help spur the housing market along. However, this may be wishful thinking as only about 35% of households with someone under 35 as the head of the household, own homes. This level was around 40% in 1999.
What’s Keeping Millennials from Buying?
There are several reasons why millennials are not becoming homeowners and seeking out Mint Hill real estate. One of the major reasons is the severe nature of the recession and how it hit millennials harder than most others. It happened as many were entering the workforce and even saw an unemployment rate among those ages 20 to 24 hit nearly 17% in 2010. This rate would have been even higher if so many millennials didn’t decide to go back to school at the time.
The struggles to find a job and heading back to school have the millennial home buying wave delayed. In addition, many millennials took on even more student loan debt, which has made it harder for many to get approved for a home loan. These factors have also contributed to millennials getting married later and starting a family later in life.
Combine the student loan debt with higher home prices and the scars from the financial crisis, and you get the perfect storm scaring many millennials out of buying a home.
Millennials Prefer Urban Living
Another factor in keeping millennials from entering the home market is their preference to live in urban areas. A larger number of millennials want to live in the central area of a city, unlike past generations. Fewer millennials are headed to the suburbs when they start a family, which was one of the reasons past generations became homeowners.
Will Millennials Start Buying Homes?
Many experts seem to believe millennials will start to buy homes, but the wave of buyers is simply delayed. Due to many going back to school, taking on more student loan debt, and entering the workforce later in life, they will likely buy homes a bit later in life than previous generations, as well.
This new generation of home buyers does want to own a home, but they have different wants, needs, and hoops to jump through than past generations. When it comes to homes for sale in Mint Hill, NC, millennials are interested, but they may not be jumping at the opportunity the way past generations did.
As they age, millennials are very likely to enter the housing market and move out of cities into the suburbs. However, even those staying within the city may decide to buy as they get older.
I would love to be part of your journey when the time is right for you. If you ever have a real estate question or need, or know someone who does, trust that you can turn to me. I will help you make the right move! Anna Granger 704-650-5707 |email@example.com.