When you hear the term \u201cThe American Dream\u201d, what comes to mind? Many will say the ability to own your own home. It is perhaps one of the biggest investments someone can make throughout their lifetime. Many see buying your first home as a milestone in your adult life, why then have many millennials put off or disregarded purchasing a home? <\/p>\n\n\n\n
Market Value Surges <\/strong> <\/p>\n\n\n\n Most secular sources agree that a mortgage should not exceed over 25% of the household’s monthly gross income, with a percentage higher than that it might bring into question the ability to maintain the payments during harder times. With the current market, most areas are experiencing a hike in housing prices with the rise of wages trailing far behind and not keeping pace. This means that those millennials who are 5 -10 years out of college are still struggling to close the gap between their wages and the average home price. <\/p>\n\n\n\n Debt it High<\/strong> <\/p>\n\n\n\n With the average millennial in their late 20\u2019s to early \u201930s in 2021, most have been working at paying down their student debt for some years. Unlike generations past, however, the debt that millennials have acquired during college years is high and causing a financial burden on many. According to the NAR, more than 50% of prospective home buyers under the age of 36 noted that student debt delayed their plans on purchasing a home. Other sources including Apartment List noted that most millennials without debt needed on average 7.6 years to save for their first down payment while those with a high student loan debt rate needed to save for more than four more additional years. All of this factors into why debt is causing a slow down in millennials with college debt in purchasing their first home. <\/p>\n\n\n\n They Think Long Term<\/strong> <\/p>\n\n\n\n Millennials as a whole are sustainability-minded. They like to think of how things will affect them for years to come and even their children. Unlike generations past when a starter home was an acceptable first home, many millennials want to be more particular and find a home that they can grow into as time ebbs away rather than moving and purchasing a new one to suit their future needs. <\/p>\n\n\n\n They Have High Standards<\/strong> <\/p>\n\n\n\n The rise of social media, home design shows, and home design magazines have been immensely influential with millennials and their counterparts. Millennials are constantly confronted with the \u201cperfect\u201d home on their social media feeds and television programs that they watch. With this, it creates a desire to have the perfect home. Millennials will wait longer to find a home than other generations because they will want to check off most if not all of their boxes, even if those boxes are purely from a design perspective. <\/p>\n\n\n\n They Crave a Community Environment <\/strong> <\/p>\n\n\n\n Millennials want to live, work and play in one central area. Gone are the days of long commutes and moving between communities. While millennials take their time to get established they will seek out a community that feels like home to them, often renting and trying it out so to speak before making the move to purchase a home there. <\/p>\n\n\n\n The bottom line is that millennials are purchasing their first homes at a much later age than generators prior, partially due to cost and partially due to the shift in our culture. When working with a millennial client be sure to fully understand their needs, wants, and desires to better assist them. <\/p>\n\n\n\n Are you a millennial in the Dallas-Fort Worth area looking to work with a trusted local agent? Anthoney Hanks of Beyond 404 Realty would be happy to help you find your dream home and make the DFW community your home. See our website for contact information regarding this. <\/p>\n","protected":false},"excerpt":{"rendered":" When you hear the term \u201cThe American Dream\u201d, what comes to mind? Many will say the ability to own your own home. It is perhaps one of the biggest investments someone can make throughout their lifetime. Many see buying your first home as a milestone in your adult life, why then have many millennials put … <\/p>\n