More Millennials Afraid They’ll Become Lifelong Renters

Most millennials want to own a home, but faced with student debt and other bills, they can’t save enough to get started. Some now fear they’ll be renters forever.

NEW YORK – Some millennials feel trapped in renting because they can’t save enough to make the leap into homeownership, according to Apartment List’s “2019 Millennials & Homeownership Report.” The report analyzes the attitudes, expectations and actions of more than 10,000 millennial renters nationwide.

The vast majority of millennials say they want to own a home and view it as a financially superior choice over renting, but nearly half of the millennial renters surveyed said they have no down payment savings. Some say they’re expecting financial support from their families, but that level of support has been declining over the past year, the survey found.

Student loan debt is a major barrier to savings plans. Debt-free millennials save about $100 more each month compared to those who are still paying student loans.

Overall, at the current savings rate, only 25% of millennial renters will be able to afford a 10% down payment on a median-priced home in the next five years. “If student loan obligations were dismissed, this would improve to 38% nationally, and more than 50% in some metropolitan areas like Minneapolis and Houston,” the study notes.

In addition, only about 13% of millennial renters say they’ll be able to afford a 20% down payment within the next five years – but that jumps to 25% if they cut the down payment by half, and to 39% if their goal is to put 5% down.

Source: “2019 Millennial Homeownership Report: More Millennials Are Preparing for a Life of Renting,” Apartment List (Nov. 19, 2019)

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Excerpted from the Florida Realtors Newsletter for your information.

Ricardo Parente, Realtor? | C F Realty LLC | Orlando, FL | https://parente.realtor