The number of millennials who can’t afford homes is at a historical low. An estimated 3 million potential first-time home buyers are not buying homes because they haven’t been able to access the housing market. So, why are young people being shut out of the housing market- and what can they do to break in?
Over the past decade, the U.S. economy desperately has been trying to recover from the housing crisis of 2008. When the housing bubble burst, the country was left reeling with a heavy recession as a result.
Now, housing prices have soared to incredulous heights, and they continue to rise. High housing prices can make it difficult for anyone to afford a home, let alone millennials. In the past, buying a house was considered a safe and strong investment, but with prices as volatile and unsustainable as they are, perhaps that’s no longer the case.
With the economic recession and the housing market overheating, it seems like millennials just can’t catch a break when it comes to purchasing a home. But that doesn’t mean that young people can’t put up a fight.
No money, more problems
We all know that millennials are broke; this should come as no surprise. However, it is remarkable that past generations have had the financial stability to break into the housing market, while our current generation has no such luck. Why is this current generation different from the rest?
Maybe the answer isn’t as extreme as avocados on toast, but spending habits are nonetheless important to take into account. After all, this generation is already dealing with the absurdly high prices of college tuition. Having debt on your shoulder can be a huge burden on your credit and your financial stability.
In order for millennials to have homes, they have to have stability not just in their finances, but also in their lives. Buying a house means dedicating your life to living in one specific spot for a long period of time, unless you can afford otherwise. And for millennials who consistently switch jobs to survive in today’s economy, the stability of staying in one place can be both unappealing and unreasonable.
Is there hope for housing?
Even though these rising prices might be hinting toward another housing bubble, it’s still possible that affordable homes could be in millennials’ futures.
For some, financial stability might seem far away, but saving and investing now can help tremendously toward your future. While this generation focuses heavily on the short-term, thinking long-term is a must for anyone who wants to get a house one day.
As the job market continues to fluctuate, it has been noted that millennials may not be getting the skills they need in school to make it in the workforce. Early investments in financially lucrative skills can serve you well toward buying your dream home.
With soaring house prices and a tight job market, millennials are finding it harder to purchase homes. However, as financial opportunities and stable lifestyles become more promising long-term options, many remain hopeful that in the not-so-distant future, a home of their own won’t be out of their reach.
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