Millennials and Gen Zers want to buy homes—but they can’t afford it
Most likely, you’ve heard it. some variationThis is what it looks like questionIt is time. time againOver the last decade, “Why don’t young people buy houses anymore?” A recent survey revealed that the simple answer to this question is money.
Most members of the Gen Z and millennial generations – U.S. adults between the ages of 18-25 and 26-41, respectively – do want to own a home someday, or even right now. According to respondents, affordability was their greatest obstacle. March Bankrate surveyResearch company YouGov.
Results: Nearly three quarters (74%) Americans still see homeownership as the top way to achieve the American Dream. It beats out having the opportunity to retire (66%), have a successful career (60%), and have children (40%). Only 35% of the respondents cited obtaining a college education as an indicator of economic success.
Particularly among millennials, 66% cited homeownership as their top indicator of success. That number fell to 59% for Gen Zers — still a large figure, and neck-and-neck with that generation’s top choice of having a successful career (60%).
Survey respondents included 1,397 homeowners and 2,529 adults. Nearly half of the respondents said that affordability was their main reason for not purchasing a home. Gen Zers said that their income was not sufficient, while millennials blamed the rising cost of housing.
In any case, it is obvious that more people will buy homes if they can afford them.
“Non-homeowners cite insufficient income, high home prices, and not being able to afford a down payment or closing costs as the most common barriers to becoming a homeowner,” Bankrate.com’s chief financial analyst, Greg McBride, said in a statement. The feeling of having insufficient income, savings, or the ability to afford a home can be exacerbated by rising and high-priced homes.
Over the last two years, the housing market has been ablaze: Rising demand has sent home prices soaring at a record rateUp roughly 34%Covid-19 has been in the news since its outbreak. Recent evidence has shown that the market is thriving some signs of coolingHowever, home ownership is still an option increasingly difficult goal for younger Americans to achieve — due especially to the outsized student debt loadsAnd repressed wagesThis was after the Great Recession.
Bankrate Survey: Many younger Americans indicated that they are willing to do something to make it more affordable. Three quarters of Generation Zers and 69% millennials agreed to consider taking action. relocating to a different stateMove to more affordable but less desirable areaYou can either take a discounted on a fixerupper in order to help your dream come true.