Do Millennials Want to Own a Home?
DO MILLENNIALS (18-34 YEARS OLD) WANT TO OWN A HOME?
30% of Millennials live at home with their parents.
HAHA... Everyone likes to save money but I don't think the 30% of18-34 year olds are loving living with mom and dad to do it though. I think the main reason for this is the discouraging reality that many are graduating college making the same or less than you can make at Costco but you have 100 grand in student loans to pay back. But that is a blog for another time.
This Millennial generation is actually PRO Home Ownership but these stats show that Millennials are backed into a corner economically. THE GOOD NEWS...There is a way out if you will learn the rules of buying and selling the largest investment most people ever come across... Their Homes. At the end of this article I show 6 Ways To Buy a Homeway before you ever thought you could.
*To see the charts better on a cell phone turn your phone sideways...
*It's the 18-30 year olds who still believe in the "American Dream" of owning a home!
*Renting cost more per month than a house payment.No wonder Millennials are living at home!Rent is at a record high in proportion to household incomes. Green is how much higher rent is than what is considered "Affordable".
*Record high stats show 32% of the Millennial Generation living in their parents houses. In Utah we have basement apartments that are very accommodating. THIS IS GOOD FOR OUR NEAR FUTURE REAL ESTATE MARKET! They are saving money up for down payments for their own homes. The 2 charts below estimate a major upswing in number of homes sold in the upcoming years.
*People are buying their first home later in life. THE PROBLEM FOR MILLENNIALS is that incomes compared to real esate prices haven't changed! Prices are up over 30 years of inflation and incomes didn't go up at all! Note, the chart shows prices and incomes in the 1970's in todays dollars adjusted for inflation.
*So consequently... First Time Buyers Are Older and they are buying more condos because they are cheaper and within their financial reach.
*What I wish 18-30 year olds knew to help buy smart and within their financial reach.
1. Buy a Discounted House that needs a cosmetic facelift with a FHA 203K Loan. The loan is only 3.5% down and will finance the repairs and facelift for you!
2. Utah Housing Loan will do 0 down or 1,000 down anywhere in Utah County or Salt Lake County.
3. USDA Rural Housing has the best interest rates and it is 0 down for Eagle Mountain, Saratoga Springs, Payson and cities south of it, and Tooele.
4. First Time Buyer Grants that gift the downpayment. Free money and you don't pay the grant back. 0 interest on the gift money for down payment.
5. Buy a Duplex, Triplex, or 4plex and save on your payments to live in one side.
6. Buy 2 Bedroom Homes for your first house. They are under priced and great long term rentals.