A grim and shocking discovery was made by The Economist, after studying the Fed Reserve Data. It concluded that only 4% of the American Millennials owned a home of their own compared to 32% of the baby boomers, when they were at their age. There are many reasons behind the lagging of Millennials. It may be due to the recession or it may also be because they don’t think it’s a wise investment.
The real estate is booming. But with that comes the high prices of homes. It is hard to buy a home at a prime location, and the one that suits your needs. Baby boomers own most of the property in sub-urban areas. Their homes are oversized and they don’t have cutting edge modern facilities.
However Millennials prefer their homes to be modern, chic and in a prime location. That’s why many of them are renting out places rather than buying it.
KJ VanDerwerken, the real estate expert, shared his views on this issue. He very bluntly said that, it is highly likely that millennials won’t even own 20% of the real estate. They can’t even come close to baby boomers.
It is hard for millennials to pay for homes, when they have to pay off the student debts. And with skyrocketing real estate prices, it seems nearly impossible. A home buyer has to pay 39% more now, as compared to what they had to pay 40 years ago.
The situation has changed in the past years. And the truth is either millennials don’t have the money to buy homes or they just don’t think it’s a good investment to make.