High Rent is Driving Millennials to Buy Homes

Published on July 17th, 2017

Have you noticed more millennials buying houses in your neighborhood?

 

Families and marriage aren’t main factors influencing millennials to buy homes. High rent is! It’s driving millennials to ditch their nomadic lifestyles and buy into homeownership.

In a survey by residential real estate company Redfin, 45.4 percent of millennials, who are also first-time buyers, said high rent influenced their home buying decision, while only 23.4 percent were influenced by a life event, like pregnancy or marriage.

This generation is on its way to becoming one of the largest groups of potential buyers in the housing market. According to Zillow Chief Marketing Officer Jeremy Wacksman, “millennials are shaping the market more than anyone realized. In fact, half of all buyers are under 36 and half of all sellers are under 41.”

When house-hunting, millennials have four main preferences after price and size. According to the Redfin survey, millennials look for school quality (43.4 percent) and house design and floor plan (43.1 percent), followed by yard or green space (35.4 percent) and commute (33.6 percent).

When millennials are purchasing homes, the economy and politics are not a concern. More than 82 percent weren’t influenced by recent stock market activity, while 86.6 percent of millennials weren’t swayed by Brexit.

It is important to notice this increase in millennial homebuyers because after the Great Recession, many millennials had student loan debt and could not find a stable job providing the income they needed. With high rent and a better housing market and economy, millennials are finding their housing needs in homes.      

4 ways to know you’re ready to buy a house

Have you hit that point in your life where you’re considering owning a home? Use these four guidelines to see if you’re ready to buy a house.

  • Your rent is too high. You can’t afford your rent anymore because your landlord or superintendent increased your rent payments after your lease expired to match rent in the housing market.
  • Your financials are in order. Your income is stable and you can afford the down payment. You also outlined your financials and are able to pay for repairs and homeownership bills.   
  • You’re ready to settle down. You’ve been renting in an area you love and want to stay there. You are also done moving around and want someplace stable.    
  • You’ve done your research. Owning a house has been on your mind lately and you’ve researched the area you want to live in, who your potential real estate agent might be and how to pay for house.

Do any of these sound familiar? You might be ready to buy a house. Talk to a loan officer today to learn more about the housing process in your area.

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