Reason Why Millennials Are Not Buying Homes

Reason Why Millennials Are Not Buying Homes

Everyone wants to buy their own home so that can peacefully settle in one place instead of looking for new homes every now and then. But studies show that the millennials are not buying homes as compared to their earlier generations. The modernization has affected many things, one of which the lifestyle, the young generation believes in staying away from home enjoying their freedom. There are more reasons the millennials are not buying homes, read along to know more about it.

1) Affordability: Studies show that the Millennials are not able to afford to buy the house as the affordability gap continues to widen. There are many people who are not earning enough to buy the house and prefer using rental houses instead.

2) Not married: Another reason people are not buying the house is that they are not married or have partners yet. Youngsters often want to delay getting married or getting in any serious relationship until the late 30’s and hence they do not see the need to buy a house.

3) Existing debts: Younger generation prefers completing studies before settling down in life, which has increased the average age of the students. The student loans are another reason contributing to the percentage of youngsters not buying a home as they have existing debts to repay. Many have agreed that their student loan was of the reason they were not able to buy home.

4) Savings: The housing prices are going up much faster as compared to the salary raises. The banks also have tightened the lending rules requiring the home buyers to put more and more down payments in order to reduce the loan amount. While there are ways to get loans from other sources, the interests for such loans are much higher making it difficult to afford the loans. Though there are ways to support your income by investing in the right methods. Using Ethereum Code is one of such smart ways to invest, learn more about it on this link.

5) Flocking closer to work: The younger generation is seen moving out of the house and staying in big cities where there are more work opportunities, better lifestyle, and facilities. They prefer staying closer to their work instead of traveling far every day. This has pushed the market prices in major cities much higher making it difficult for everyone to settle down and buy spacious homes.