Millennials Against the World Millennials homeownership compared to other generations

Glossary

Generation: group people born and living around the same time period

Millennial Generation: "Generation X" - generation born from 1980-2004

Immigration: moving permanently to a new country

Diversity: variety of races and ethnicities

Homeownership: act of buying or owning a home

Loan: sum of money borrowed, to be paid back with interest

Stock Market: a stock exchange throughout the United States of America

Why and how is the Millennial generation so different from the others?

The Millennials have learned from prior generations, just like every generation has, except the difference is that they actually adjusted their lifestyles. The millennial generation is the largest generation yet; they have even passed up the Baby Boomer generation. In addition to the huge generation, more immigrants have came over to America. Richard Fry, researcher at Pew Research Center, states that “With immigration adding more numbers to its group than any other, the Millennial population is projected to peak in 2036 at 81.1 million” (Fry). All of this means that more people need homes and the population is rising in the U.S., resulting in prices of homes rising. Also, the millennials have had to deal with money much differently than other generations. Ashley Stahl, expert writer for Forbes, explains this by saying, “Millennials have had access to much less money than prior generations due to unemployment levels and low salaries, so they’ve had to be strategic about how they manage their finances and prioritize their spending” (Stahl). All of this reflects on how different the Millennial generation is from others because of just how many people are within the generation, and how they prioritize what they actually need in their lives.

So what age will the millennials start buying their own homes or continuing their lives like past generations?...

Around what age will they start buying homes?

As it may seem that the answer to this question would be one certain age, but there is actually more that goes into what age the millennials will actually start to catch up to the rest of the generations. Once the millennials hit their 30’s they will start to continue to grow up and buy homes just like past generations. “According to Ken Rosen, chairman of the Fisher Center for Real Estate and Urban Economics at the University of California, Berkeley, when compared with previous generations, millennials are delaying the purchase of a home by about a decade as the average age at which people get married and start to have children increases” (Shuster 4). This is important because eventually, the house market will go back to normal in less than a decade. But on the other hand, Krystina Gustafson, editor and retail reporter for CNBC, cites that “the median age of first-time homebuyers reached 35 between 2010 and 2015, according to PwC. That's an all-time high since the firm started tracking this metric in 1970.” Although the age of first time homebuyers is rising, at least the Millennials are getting stable before they make another large commitment. Overall, the many variables that go into what age the millennials will buy homes will come together when they hit their 30’s.

But this doesn't solve the fact that it takes many other variables to actually become an adult, so when will the rest of their lives egnyte?

Because they are delayed in the homeownership, will the rest of their lives be pushed back too?

Many experts hoped that because the millennials are so behind in the homeownership market, that they would maybe be ahead in other areas. But to begin with, the millennials are not even finding the “one” for them. Kamens, a Coldwell Banker agent in Pennsylvania states that, “‘Millennials are getting married later in life than previous generations, and a sense of urgency to purchase comes with stability, marriage and growing families,’” (Saiidi). This reflects on many other parts of their lives, and proves that the millennial generation is not in a secure part of their lives yet. Unfortunately, they’re not just behind in marriage. Derek Thompson, author and editor for The Atlantic, cites that “In August 2010, Robin Marantz Henig observed in New York Times Magazine that Generation Y (the Millennials) has pushed back each of the five milestones of adulthood: completing school, leaving home, becoming financially independent, marrying, and having a kid” (Thompson). This is a catastrophe for this generation, and ones to come, because they are delaying the workfield, stock market and many more things that impact our world immensely. Therefore, yes the Y Generation is behind in all areas of life, not just homeownership.

Because millennials are so behind with buying homes, what are some alternatives for living situations?

Are rentable complexes becoming more popular because of the downfall of homeownership?

Due to the large price tag of being a homeowner, millennials are leaning towards other alternatives like rental apartments or homes. As it is true that millennials have thousands of dollars to pay off of student loans, which therefore means that they cannot afford a home, Trulia editorials explain to Forbes, “the true homeownership rate for 18-34 year olds has fallen to a new low: 13.2%” (Trulia). That percentage is it not just because millennials are so behind financially; but it’s also because they also love the amenities that come along with these nice rental complexes. Additionally, Neeta Mulgaokar, real estate agent in New York, states that "Many millennials have been burned or felt trapped by contracts (cell phones, cable, even student loans) and are shying away from long-term commitment" (Saiidi). Millennials are being very cautious about large commitments because of most of the other large traps they have already been in. Therefore, the rental complexes are the most popular alternatives for this generation.

So if the millennials are not investing in homes, are they investing in anything at all?

If millennials aren’t investing in homes, are they investing in alternative things?

The millennials are not seeming to invest in anything. In fact, the majority of them are not even thinking about it. A poll put on by Stash, an investment app for millennials showed that “nearly 4 in 5 millennials (79 percent) are not currently investing in the stock market” (Stock Market Investing). This is a large problem for the U.S. stock market, and the future of millennials. This may lead to the Millennial generation and future generations to never be able to retire. But they do have a point, and millennials are really good at saving money. Josh Weiss, writer for CNBC, explains that, “More than 40 percent said they feel they don't have enough money, 34 percent said they don't know how, while 13 percent specifically blamed student debt” (Weiss). Unfortunately, fear and not enough knowledge about the stock market, is taking over the millennial mindset. Overall, the millennial generation is not investing in anything because they don’t have enough money, or are too scared to.

This video helps explain a real life situations of what goes through millennials minds when trying to decide whether to buy a home. They try to figure how much they are willing to spend and they realize just how much less renting actually is.

Credits:

Created with images by Unsplash - "houses facades architecture" • White77 - "family holiday people" • nathanmac87 - "Dearborn Apts" • terimakasih0 - "apartments high rise hotel" • ell brown - "Edgbaston Mill - Hemisphere" • Tuffbau - "EIB - 008" • Philippe Put - "sunish"

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