Millennials: The fight toward homeownership continues
Posted on Tuesday, June 14, 2016 at 11:15:30 PM
Millennials have become one of the largest groups of homebuyers in the country in recent years, and are now likely the most important demographic in the context of long-term residential real estate market health. At the same time, the generation has long struggled to secure the financing they need to purchase a home due to a range of issues, and are sometimes steered away from homeownership due to the highest amount of outstanding loans in history.
Interesting studies have been released regarding the fight among millennials to purchase a home comfortably, and one can only hope that the market trends in a positive direction for the group, given the economic impact either outcome will yield.
A look inside
USA Today recently explained some of the trials and tribulations of millennial couples who are looking to buy a house, and included a range of broader statistics. For example, the source cited a study from the National Association of Realtors that found each house purchased at the national median rate injected an estimated $72,000 into the economy in 2014. The study also found that the process was found to have a positive impact on the jobs outlook as well.
According to the news provider, other research has found that millennials are the most likely generation to align homeownership with the American dream, but fewer than 10 percent intend to purchase a house in the next 12 months. Perhaps even more worrisome, the USA Today noted that one couple who had a strong savings account, no debt and two incomes still struggled to close on a house, which does not bode well for the average millennial.
This is somewhat of a strange trend, as so many other trends in residential real estate and financing have been firing on all cylinders for years now.
Low rates to boot
Bankrate reported that rates on the average home equity loan dropped for both the $30,000 and $50,000 values. Rates and terms have been highly preferable since about 2011, and more millennials are seeking homeownership, but there still appears to be something missing out of this equation.
Millennials might want to consider first approaching a smaller, community bank when seeking out residential financing programs, as these institutions tend to be better-suited to the needs of first-time buyers. Perhaps doing so can help the generation surpass hurdles and reach higher homeownership rates in the coming years.