For several years, the common wisdom is that Generation Z and younger Millenials would generally be perpetual renters due to a persistently tight housing market.
The tides might be turning, however, and recent evidence shows that young adults could be warming to the idea of handing over a down payment on a house.
Industry insiders have determined that more than 6 in 10 prospective home-buyers in the aforementioned generations are planning to apply for a mortgage at some point this year. This seems to indicate that these folks believe the conditions are favorable for purchasing a house.
Although there are still plenty of young adults who aren’t interested in buying — at least not at the moment.
For those who are ready to take the plunge, there appear to be a few reasons for their sentiment. The most obvious factor, however, is that rent (particularly in urban areas) just keeps going up and up.
Although the thought of ditching a landlord might be appealing on its face, there are plenty of reasons for young adults to remain trepidatious. Here are a few of the top reasons for Gen Zers and Millennials to settle into their renting lifestyle:
- The market remains incredibly competitive and prices continue to stay stubbornly high.
- Millennials already have a combined trillion dollars in debt and many young adults are saddled with bad credit scores.
- More than 1 in 4 people in these younger generations know little or nothing about the mortgage process.
There are some novel solutions on the horizon that seem to appeal to young adults, such as going in on a home with a group of friends.
It’s always overwhelming to purchase a house — but there are resources out there for those who are serious about the concept.