Why Millennials Are Not Buying Houses
Millennials – young people born after 1980 – are delaying marriage and can’t afford to move into their first home because of soaring house prices. 36% of adults aged 18 to 31 still live at home with their parents.
Fewer young adults are leaving home early, getting married or buying their first home. More are still living with their parents in their 20s and even early 30s.
Why the Young Aren’t Flying the Nest
One of the main reasons for this is the huge cost of tuition. Once they graduate from college and university, they are saddled with a large debt that take a chunk out of their disposable income. They cannot spare any to save for buying a house. 71% of recipients of bachelor’s degrees leave university with a loan to pay off.
A poor job’s market is also to blame. There are fewer jobs available today than there were in the 1960s. The unemployment rate for people in their 20s with a BA is 13.5%. For those in work, wages are comparatively lower. The starter rate given to young workers makes it difficult for many to raise enough for a down payment on a home.
Down Payment Help
Wasatch Peaks Credit Union explains that down payment assistance in the Ogden area is available to local young adults to help them purchase their first home. Down payment assistance programs offer loans or grants to cover the cost of a down payment.
For example, if a first-time buyer wants a $200,000 home, they would need $6,000 for a 3% deposit on the property, an amount that would take five years to accumulate if they could save $100 a month. An assistance program might offer a 2% deposit that would either eliminate the cost or cut it down to a period of months.
Poor job prospects, low wages, student loans and high house prices are keeping young adults in the parental home longer, but a down payment assistance program can help them own their first home.