**1. They’re not buying homes.** Millennials are the largest generation in history, but they’re also the least likely to own homes. In 2019, only 38% of millennials owned homes, compared to 43% of Gen Xers and 51% of baby boomers at the same age.
What does this mean? More competition for the homes on the market, which is driving up prices..
**2. They’re buying smaller homes.** Even when millennials do buy homes, they’re opting for smaller ones than previous generations. In 2019, the median square footage of a home purchased by a millennial was 1,700 square feet, compared to 1,900 square feet for Gen Xers and 2,100 square feet for baby boomers. Why? Because they can’t afford more.
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**3. They’re taking on more debt.** Millennials are graduating with more student loan debt than any other generation. In 2019, the average student loan debt for a millennial was $29,000. This debt makes it harder for millennials to save for a down payment on a home, which is further driving up prices.
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**4. They’re saving less.** Millennials are also saving less money than previous generations. In 2019, the median savings rate for millennials was 5%, compared to 7% for Gen Xers and 10% for baby boomers. The reasons for this range from stagnant wages to higher living costs.
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**5. They’re renting longer.** Millennials are also renting for longer periods of time than previous generations. In 2019, the average age of a first-time homebuyer was 32, compared to 29 for Gen Xers and 26 for baby boomers. This is due in part to the factors mentioned above, such as high housing costs and student loan debt.
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**6. They’re more likely to live in urban areas.** Millennials are more likely to live in urban areas than previous generations. This demand for urban homes is driving up prices in those areas, making it harder for people to afford to live there.
**7. They’re more likely to be single.** Millennials are more likely to be single than previous generations. This means there are more people competing for the same number of homes, which is driving up prices.
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**8. They’re waiting longer to have children.** Millennials are waiting longer to have children than previous generations. This means they’re buying homes later in life, when they have more money saved up. This is also driving up prices, as there are more people competing for the same number of homes.
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**9. They’re more likely to be entrepreneurs.** Millennials are more likely to be entrepreneurs than previous generations. This means they’re more likely to have irregular incomes, which can make it harder to qualify for a mortgage. This is also driving up prices, as there are fewer people who can afford to buy homes.
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**10. They’re more likely to value experiences over material possessions.** Millennials are more likely to value experiences over material possessions than previous generations. This means they’re less likely to buy homes, as they’d rather spend their money on travel and other experiences. This is also driving up prices, as there are fewer people who are willing to buy homes.
So, there you have it. Ten ways millennials are ruining real estate for everyone else. Just kidding! But seriously, these are some of the factors that are making it harder for millennials to buy homes. It’s important to remember that millennials are not a monolithic group, and there is a lot of variation within the generation. However, these trends are real, and they’re having a significant impact on the housing market..
