Millennials are an oft-discussed group in the real estate industry, since they are seen as the demographic with the largest potential to lead the charge on homeownership and shape homebuying practices and preferences for years to come. But, as seen in the Home Buyer and Seller Generation Trends study by the National Association of Realtors, the rate of new homeownership is down, and researchers are trying to crack the nut on why millennials aren't out in droves buying homes. Theories abound, such as an inability to meet high lending standards, a lack of knowledge about down payment resources, the financial pressures of paying back student loans or that millennials would rather move in with parents or become renters. Some of these findings would lead people to believe that millennials don't want to become homeowners. But NerdWallet, which released a report of its own on millennials, says that assumption is incorrect. “There’s a strong indication that millennials...
- NerdWallet released a new study on millennials and homeownership. They found that millennials want to become homeowners, they just believe it's not possible.
- Some of the perceived barriers to homeownership are an inability to save for a down payment and unaffordable monthly payments.
- But, the study found the average millennial will only pay $925 per month, which leaves them with a 25 percent debt-to-income ratio. Lenders usually look for a 28 percent debt-to-income ratio when evaluating applications.
The real estate event of the summer
Connect with other top producing agents at Connect SF, Aug 7-11, 2017