Research Reveals Why Millennials Wouldn’t Buy a House Anytime Soon

Millennials tend to have that reputation of not being able to handle money well enough compared to the previous generations. Turns out that they are now facing another major comparison but this time around it has got to do with actually owning their own houses.

One of the most common old-school goals would be getting a degree, having a good career, have their own family and finally, having their own house to call a home. However, looks like millennials seem to be showing that they are not exactly keen on doing the last part according to the most recent study.

Everybody obviously wish to have their very own place that they would be able to call a home, then again, it doesn’t mean that you have to purchase that place right away.

Millennials are the young adults of today and are currently showing different life choices in comparisons to the previous generation of baby boomers

Can Homeownership Wait?

Back in the day, it was very common for people to get married in their twenties and have a house full of babies. Nowadays, it is a totally different case, because more and more people are actually waiting to be in their 30s to get married and have children.

Because of the advanced technology, women in particular are no longer worried about having children later in life. According to some psychologists, millennials have a different way of thinking, most of them choose to live their lives as it happens rather than living in a fantasy that they are going to try so hard to fulfill.

This causes them to choose not to buy a house, an apartment or a rental house is something that they think are more convenient for them. They also know the responsibilities that they would need to carry once they actually purchase their own houses, including having to pay for tons of insurances.

Having children is something that they know would be incredibly expensive, which is why they are trying to put it off and have it later.

The continuous increase of most property prices in the United States is said to be one of the main reasons why millennials may not be very keen on purchasing a house

Millennials are also facing another hindrance when it comes to purchasing their very own homes, and that is the massive student debt most of them are in.

Depending on how much they make with their chosen careers, it may take them years to actually be able to pay off their student debt. So, who would want to pay off a mortgage right after paying off a student debt that has lasted for years?

Having to enslave at work every single day to actually pay off the dues can be exhausting, instead of actually being inspired of becoming better on their careers they sometimes feel like having a mid-life crisis despite only being in their 20s.

Experts also believe that Millennials would rather spend most of their money on the things that they think would benefit them the most such as getting a decent vehicle or get into an investment that is not a house.

Playing The Waiting Game

It may be understandable why most millennials choose to wait until they are in their mature adulthood when they purchase a house and start a family, then again, experts also believe that it has its own downside.

Some mortgages requires almost 10-20 years to pay depending on the agreement plan, which means that it may be more difficult for people who must be thinking of saving for their retirement to think of getting a house at the same time.

In 2016, the homeownership rate fell more than 60 percent, which is known to be the lowest rate recorded in the half a century. Researchers found that people under the age of 30 are not exactly as interested in purchases a home as those from the previous generation.

This could then lead to them having a hard time when it comes getting ready for retirement. According from the researchers from Stanford University, it is not financially secure to buy a house when they are also trying to fund a 30-year retirement.