A study conducted by Apartment List, a rental listing company, referenced in this Wall Street Journal article illuminates a very real tension at the heart of today’s housing market. The vast majority of millennials say they eventually plan to buy a home but the primary obstacle is they can’t afford it.
The reasons young people are falling behind include student loan debt, rising rents and the slow starts many got to their careers during the recession. These reasons combined with the rapidly increasing cost to buy in many housing markets across the country is placing home ownership out of reach for this generation.
The real issue up for discussion here is the choice/ability to save. Some of the statistics in the article indicate that only a small percentage of Millennials are able to save enough for a 10% down payment in the next 3 years.
Take a quick look at the article and let me know what you think. Is it really too hard for this generation to save enough money to buy a house or are they choosing to “experience” life in lieu of making the sacrifices necessary to save?
WSJ-Millennials Want to Buy Homes but Aren’t Saving for Down Payments