{"id":1463,"date":"2018-02-23T20:55:57","date_gmt":"2018-02-23T20:55:57","guid":{"rendered":"http:\/\/blog.himorty.com\/?p=1463"},"modified":"2023-09-17T20:16:18","modified_gmt":"2023-09-18T01:16:18","slug":"millennials-buying-homes-heres-theyve-learned","status":"publish","type":"post","link":"https:\/\/www.morty.com\/resources\/mortgage-101\/millennials-buying-homes-heres-theyve-learned","title":{"rendered":"Millennials are Buying Homes. Here&#8217;s What They&#8217;ve Learned."},"content":{"rendered":"\n<hr class=\"wp-block-separator has-alpha-channel-opacity is-style-wide\"\/>\n\n\n\n<p>Homeownership for many represents the American Dream: security, family, and stability. However, the 2008 housing bubble burst managed to shake this dream\u2014just as the earliest Millennials started making their way into adulthood. Despite this setback, many continue to aspire towards homeownership. In fact, in 2017 Millennials contributed over $514 billion to the housing market. Millennials are the<a href=\"http:\/\/zillowgroup.mediaroom.com\/2017-09-27-Millennials-Going-Over-Budget-to-Buy-Homes-in-Todays-Hot-Market\"> largest group <\/a>of US homebuyers.&nbsp;<\/p>\n\n\n\n<p>What are the factors that made homeownership a&nbsp;<em>Millennial<\/em> Dream? And what are the realities Gen-Y homebuyers are facing as they embark toward this new chapter in their lives?<\/p>\n\n\n\n<p>Read on to find out!<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Rent Is Too High<\/h2>\n\n\n<div class=\"wp-block-image\">\n<figure class=\"aligncenter\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"683\" src=\"https:\/\/morty-content-production.s3.amazonaws.com\/uploads\/2018\/02\/rik-van-der-kroon-95384-unsplash-1024x683.jpg\" alt=\"\" class=\"wp-image-1464\" srcset=\"https:\/\/www.morty.com\/resources\/wp-content\/uploads\/2018\/02\/rik-van-der-kroon-95384-unsplash-1024x683.jpg 1024w, https:\/\/www.morty.com\/resources\/wp-content\/uploads\/2018\/02\/rik-van-der-kroon-95384-unsplash-300x200.jpg 300w, https:\/\/www.morty.com\/resources\/wp-content\/uploads\/2018\/02\/rik-van-der-kroon-95384-unsplash-768x512.jpg 768w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\" \/><\/figure><\/div>\n\n\n<p>Rent prices continue to soar. Increasing rent has become a driving factor for homeownership, encouraging many Millennials to go out and buy. Chelsea, a 27-year-old newlywed from Buffalo, NY decided to purchase a home with her husband after a conversation with her father left her questioning her choice to rent. After constantly moving around due to bad landlords and rent increases, they\u2019d had enough. Convinced that they were \u201cthrowing money away\u201d by renting, they decided to look into buying a home.<\/p>\n\n\n\n<p>This is not an uncommon situation. Why pay thousands of dollars in rent when you could be putting that money towards finding a house? Homeownership at least provides equity and something to call your own. However, getting started in the process can be prohibitively expensive, especially in this economy. Only<a href=\"http:\/\/zillowgroup.mediaroom.com\/2017-09-27-Millennials-Going-Over-Budget-to-Buy-Homes-in-Todays-Hot-Market\"> 2 out of 5 Millennials<\/a> are able to afford the recommended 20% towards a down payment. People are beginning to get more creative with saving up the cash. Borrowing money from family, buying houses under contract, opting to pay 3% and take on homeowners insurance, renting out a room or even moving to less expensive areas. <\/p>\n\n\n\n<p>After taking a look at their finances, Chelsea and her husband were able to purchase their current home: a duplex on the edge of downtown Buffalo. Close enough to expose them to the creative culture of city life, without breaking the bank. To help get ahead on the mortgage, they rent out their two bedroom unit downstairs. That makes them both first-time homeowners and landlords. <\/p>\n\n\n\n<p>As daunting as the process was, it was not a difficult decision for the couple. \u201cI prefer to be a homeowner,\u201d she says. \u201cAfter all the experiences with bad landlords, it feels good to be in control.\u201d <\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Nobody Is Moving<\/h2>\n\n\n<div class=\"wp-block-image\">\n<figure class=\"aligncenter\"><img decoding=\"async\" src=\"https:\/\/morty-content-production.s3.amazonaws.com\/uploads\/2018\/02\/sam-wheeler-95303-unsplash-1024x678.jpg\" alt=\"\" class=\"wp-image-1465\"\/><\/figure><\/div>\n\n\n<p>Nobody likes moving. But it seems the generation that hates moving the most is the Baby Boomers. In fact, although the largest group of homebuyers is Millennials, the largest group of <em>homeowners<\/em> is still the Boomers, with an<a href=\"https:\/\/www.nar.realtor\/research-and-statistics\/research-reports\/student-loan-debt-and-housing-report\"> average homeownership<\/a> rate of 78%. The US real estate market is currently facing the worst home inventory deficiency in two decades. A <a href=\"https:\/\/www.nar.realtor\/research-and-statistics\/research-reports\/student-loan-debt-and-housing-report\">realtor.com<\/a> study attributes this to Boomers staying put, leaving Millennials without enough homes to go around. <\/p>\n\n\n\n<p>Despite the popular notion that Millennials are trying to flood into cities, more and more of them are reaching an age where marriage and family are starting to become an attractive option. They are looking for single-family homes in suburban areas which, to their dismay, they find to be already occupied. In return, the Boomers who currently own those homes are reluctant to downsize, probably for the same reasons that Millennials are struggling to buy\u2014increased prices on homes that fit their needs. This lack of movement in the market has consequences. Over <a href=\"http:\/\/zillowgroup.mediaroom.com\/2017-09-27-Millennials-Going-Over-Budget-to-Buy-Homes-in-Todays-Hot-Market\">33 million properties<\/a> (mostly urban condos and suburban single-family homes) remain off the market and unavailable to young people looking to purchase. <\/p>\n\n\n\n<p>Millennials have proven to be very skeptical house hunters, particularly given the areas that they live. Often moving to larger cities to start their careers, young people are finding the housing market to be particularly tough. One study showed that 62% of Millennials are also in the market for a rental while looking to buy a home. Finding a home is not always a sure thing. <\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Student Loans Are Expensive<\/h2>\n\n\n<div class=\"wp-block-image\">\n<figure class=\"aligncenter\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"683\" src=\"https:\/\/morty-content-production.s3.amazonaws.com\/uploads\/2018\/02\/yanapi-senaud-460984-unsplash-1024x683.jpg\" alt=\"\" class=\"wp-image-1466\" srcset=\"https:\/\/www.morty.com\/resources\/wp-content\/uploads\/2018\/02\/yanapi-senaud-460984-unsplash-1024x683.jpg 1024w, https:\/\/www.morty.com\/resources\/wp-content\/uploads\/2018\/02\/yanapi-senaud-460984-unsplash-300x200.jpg 300w, https:\/\/www.morty.com\/resources\/wp-content\/uploads\/2018\/02\/yanapi-senaud-460984-unsplash-768x513.jpg 768w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\" \/><\/figure><\/div>\n\n\n<p>Apart from making Millennials miserable at a tune of 1.4 trillion dollars, student loans also prevent young people from going after their dreams. A poll done by the <a href=\"https:\/\/www.nar.realtor\/research-and-statistics\/research-reports\/student-loan-debt-and-housing-report\">National Association of Realtors<\/a> shows that 83% of Millennials cite student loan debt as a big factor deterring them from pursuing homeownership. Of the 41% of Millennials that are homeowners? Over a quarter cite student loans as a barrier to moving to a different home. With this amount of debt, it\u2019s no wonder that committing to the purchase of a home feels like an impossibility. A<\/p>\n\n\n\n<p>Madi, a 26-year-old homeowner, cited student loans as a factor that she considered before she and her husband purchased their home in Des Moines. \u201cI ended up leaving graduate school with about $200,000 in student loan debt,\u201d she said. \u201cSo it was definitely something we considered when we were about to get a mortgage.\u201d <\/p>\n\n\n\n<p>Student loans are a hefty burden to bear for the sake of educating yourself. But it may be a case where the bark is harsher than the bite. That\u2019s exactly what happened in Madi\u2019s case. Since student loans were her only debt, she was able to co-sign on the loan and they were able to purchase the home they currently live in. <\/p>\n\n\n\n<h2 class=\"wp-block-heading\">What Next?<\/h2>\n\n\n<div class=\"wp-block-image\">\n<figure class=\"aligncenter\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"683\" src=\"https:\/\/morty-content-production.s3.amazonaws.com\/uploads\/2018\/02\/matt-jones-94160-unsplash-1024x683.jpg\" alt=\"\" class=\"wp-image-1467\" srcset=\"https:\/\/www.morty.com\/resources\/wp-content\/uploads\/2018\/02\/matt-jones-94160-unsplash-1024x683.jpg 1024w, https:\/\/www.morty.com\/resources\/wp-content\/uploads\/2018\/02\/matt-jones-94160-unsplash-300x200.jpg 300w, https:\/\/www.morty.com\/resources\/wp-content\/uploads\/2018\/02\/matt-jones-94160-unsplash-768x512.jpg 768w, https:\/\/www.morty.com\/resources\/wp-content\/uploads\/2018\/02\/matt-jones-94160-unsplash-1536x1024.jpg 1536w, https:\/\/www.morty.com\/resources\/wp-content\/uploads\/2018\/02\/matt-jones-94160-unsplash-2048x1365.jpg 2048w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\" \/><\/figure><\/div>\n\n\n<p>Although it might feel like the road to homeownership is long and trying, it is certainly not impossible. It\u2019s true that absurd rents, the burden of student loans, and a slowly recovering housing market makes buying a home more challenging. However, many people are utilizing their creativity and their resources to make their dreams of homeownership come true. With some forward planning, organization, and a bit of luck, you too can tackle the challenge of owning your own home. <\/p>\n\n\n\n<p>Curious about what options are out there to get you started? Head over to <a href=\"https:\/\/www.morty.com\/\">our homepage<\/a>, and let Morty help you find the right mortgage for you! <\/p>\n","protected":false},"excerpt":{"rendered":"<p>Homeownership for many represents the American Dream: security, family, and stability. However, the 2008 housing&#8230;<\/p>\n","protected":false},"author":1,"featured_media":1470,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"content-type":"","_lmt_disableupdate":"","_lmt_disable":"","_kad_blocks_custom_css":"","_kad_blocks_head_custom_js":"","_kad_blocks_body_custom_js":"","_kad_blocks_footer_custom_js":"","_kad_post_transparent":"","_kad_post_title":"","_kad_post_layout":"","_kad_post_sidebar_id":"","_kad_post_content_style":"","_kad_post_vertical_padding":"","_kad_post_feature":"","_kad_post_feature_position":"","_kad_post_header":false,"_kad_post_footer":false,"footnotes":""},"categories":[6],"tags":[],"series":[],"class_list":["post-1463","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-mortgage-101"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v25.3.1 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Millennials are Buying Homes and Have Learned This. | Morty Resources<\/title>\n<meta name=\"description\" content=\"Millennials contributed over $514 billion to the housing market, making them the largest group of US homebuyers.\u00a0Here&#039;s what they&#039;ve learned.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.morty.com\/resources\/mortgage-101\/millennials-buying-homes-heres-theyve-learned\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Millennials are Buying Homes and Have Learned This. | Morty Resources\" \/>\n<meta property=\"og:description\" content=\"Millennials contributed over $514 billion to the housing market, making them the largest group of US homebuyers.\u00a0Here&#039;s what they&#039;ve learned.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.morty.com\/resources\/mortgage-101\/millennials-buying-homes-heres-theyve-learned\" \/>\n<meta property=\"og:site_name\" content=\"Morty Resources\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/HiMorty\/\" \/>\n<meta property=\"article:published_time\" content=\"2018-02-23T20:55:57+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2023-09-18T01:16:18+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/www.morty.com\/resources\/wp-content\/uploads\/2018\/02\/christopher-burns-437752-unsplash.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"2560\" \/>\n\t<meta property=\"og:image:height\" content=\"1978\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"Nora Apsel\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:creator\" content=\"@himorty\" \/>\n<meta name=\"twitter:site\" content=\"@himorty\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Nora Apsel\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"5 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\/\/www.morty.com\/resources\/mortgage-101\/millennials-buying-homes-heres-theyve-learned#article\",\"isPartOf\":{\"@id\":\"https:\/\/www.morty.com\/resources\/mortgage-101\/millennials-buying-homes-heres-theyve-learned\"},\"author\":{\"name\":\"Nora Apsel\",\"@id\":\"https:\/\/www.morty.com\/resources\/#\/schema\/person\/b2240f410dcc926390e8592cf8b62046\"},\"headline\":\"Millennials are Buying Homes. 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