The Obstacles and How You Can Overcome Them
Millennials describe a person born in the late 80s to mid-90s and are now fully-grown adults trying to make their way in the world.
Millennials have struggled to build up their wealth, assets, and income like their grandparents and parents did. But unfortunately, the pandemic quickly eroded savings for many.
Still, for some millennials, a sense of adulthood became more attainable during tough times, and they are now homeowners.
Ahead, we will discuss the trends behind Millennials’ home-buying, common obstacles, and solutions to helping them achieve homeownership.
Millennial Home-Buying Stats
The stats behind millennial home-buying is pretty favorable. Forty-eight percent of millennials now own a home and are no longer renting, and since a house is perhaps the biggest asset you can gain in your life, that’s a pretty big deal. It shows how hard some people are willing to go to own the roof over their heads.
However, there are some stats that you might be too familiar with it. For example, a good portion of millennial homebuyers was able to buy their home thanks to a gift from their relatives, which they often used as a down payment.
Another significant portion of this segment came from affluent families. Lastly, millennials who bought homes are wealthier than those still renting.
You might be a little dissuaded by these facts. Still, it’s essential that while these percentages are significant, they don’t make up the majority.
Millennial Home-Buyer Strategies to Homeownership
Millennials can still own a home even if their parents aren’t wealthy or have won the lottery. However, here are a couple of obstacles (and solutions) millennials tend to have when trying to purchase a home.
Not a Big Enough Down Payment
A down payment is a very tricky one to overcome. Depending on your situation, you might not have the means to save much money for a down payment. But there’s a solution to this very problem.
- Solution: Always be Saving
Anything! A nickel, a dime, or a dollar. Save every single cent you can and put it in a high-yield savings account, so your money accumulates interest over time. Interest rates on high-yield saving accounts can be 20 to 25 times higher than traditional accounts.
Finding the Right House
Everyone has difficulties finding their dream home, but remember that your first house doesn’t exactly have to be perfect. It might not meet your expectations, but it might meet your standards. You can focus on getting the home of your dreams when you’ve accumulated enough wealth to buy another house.
- Solution: Make a list of wants and needs
Make a list of what you want in your house and what you need in your home. Then, if the place you’re looking for meets all of your needs and a good bit of your wants, it might be the right house for you.
No Affordable House Listings
Affordability is tricky to overcome, but there are several ways to get around this.
- Solution: Negotiate
Negotiation is a huge one! Never be afraid to negotiate the price of the house. After all, you want to ensure you are getting the best deal possible. If you’re not negotiating, you’re not going to buy a house at a reasonably comfortable price.
- Solution: Connect with Local Realtors
Having the right local realtor on your side can enhance your buying experience. In addition to knowing the market trends, a realtor can help with lifestyle choices and fit. Contact the realtors in your area to see if a house in your budget is available before giving up!
- Solution: Consider Moving to Another Area
There might not be any affordable listings in your area, but you haven’t tried other communities. Depending on your budget, you might find suitable, affordable housing in a town nearby. All it takes is to broaden your search. Additional perks of expanding the search area are more space and privacy.
Conclusion: Don’t Give Up!
We might not be able to change the state of the housing market, but we can make the market work in our favor. So never lose hope that you might someday be a homeowner. After all, having a place you can call your own is the American Dream.