What you are about to read is inspired by the responses we’ve received from asking this question:
What challenges do you think millennials face in the housing market compared to earlier generations?
It comes as no surprise that this generation has faced a lifetime’s worth of experiences in our 23-41 years on this earth. I could sit here and throw out numbers and statistics to show that millennials are showing to be well off in the housing market and leave it at that, but it would be doing you a disservice if I were to downplay the effects that the economy has had on our purchasing ability in our adult lives. However, what I am NOT here to do is jump in with the headlines and continue to perpetuate the mindset that we are set up for failure. We have the choice to direct our focus one of two ways:
What is holding me back from being able to do this?
or
What can I do to make this happen?
I want to first start off by acknowledging the most common response I got from this topic’s question, and that was the amount of student loan debt in this generation. And hey, the data backs that up. According to the National Association of Realtors’ (NAR) 2022 Home Buyer and Seller Generational Trends report, millennial home-buyers rank as the most educated, holding more, and higher, degrees than generations past. In fact, 90% of home-buyer millennials in the 23-31 age bracket (younger millennials) had at least an associate degree. So will this play a role? Absolutely. Will it keep you from ever being able to buy a home? Absolutely not.
Here is the difference– we listened. You might have been among the kids at the top of the stairs listening to our parents talk about financial issues, or even now listening and seeing our parents having a hard time retiring due to a lack of financial investment. There is no doubt that we know what we don’t want to have happen, and because of that we can take action on what we WANT to have happen. Here is some hope: millennials now make up 43% of all home-buyers–the most of ANY generation, up 37% from last year. We are in the driver’s seat of this market and THIS is the generation closing these deals and purchasing these homes, despite what may be working against us. Put yourself in the mindset that there is a solution to every problem. Because those that are there are the ones getting it done.
Credit is low?
I will put you in touch with a great credit repair consultant.
Deferred student loans crushing your debt to income (DTI) ratio?
I will give you the resources to help get you on an affordable repayment plan and free up your purchasing ability responsibly.
Having trouble saving money for a down payment?
I will connect you with a financial advisor who won’t tell you that you just need to stop buying avocado toast and starbucks.
Still convinced that down money will be a concern?
Talk to a lender! This is where everyone should begin regardless of what the roadblock is. Chances are you may not even know how much you would actually need to come to the table with and it may be less than you think. I work with lenders who provide creative solutions to help you get to where you need to be. So explore all of your options before being so quick to throw in the towel.
Ultimately what it comes down to is action. The action that needs to be taken will look different for everyone, and the amount of time it may take to overcome the challenges you’re facing will vary. But we are a generation that has grown up in an era where information and resources came to our literal fingertips with the rapid growth of technology and we have more knowledge, information, and people at the touch of a button than any generation before us.
So, would you rather have problems or get solutions? Let’s go get it done.
