Millennials want homes, but still have trouble affording them
Posted on Friday, August 7, 2015 at 9:57:26 AM
Many millennials are either putting off homebuying or seeking help from their families to get the process off the ground.
Homes are expensive, and that is especially true for millennials who seem to have gotten the shortest end of an already short stick following the recession. Strapped with student loan debt and tasked with finding work without much previous experience in an economy just now starting to turn around, purchasing a home may seem financially impossible to many.
A St. Louis Federal Reserve report found that many millennials are OK with putting off homeownership for a decade or longer, according to the Boston Herald. And when they aren't willing to wait that long, younger homebuyers often turn to family for help.
Though young adults are driving homebuying, down payments remain tough for many millennials. Because of this, Endeavor America Loan Services found they often turn to borrowing from family, according to Inman. More than 41 percent of respondents to a survey of 5,404 millennials indicated they had used a co-borrower to qualify for residential financing. A number of individuals also noted that they recently received assistance from a family member for a down payment.
Many millennials want to purchase a home, but whether they can afford to is another question. It seems it is often a choice between turning to mom and dad, or just putting it off.