The largest generation in history, the Millennials, are not buying houses. They are spending more time as renters and travelers, saving their money for different outlets than their parents. The housing market has never seen abstinence at this level from people who, traditionally, are one of the biggest groups of home buyers. The biggest question is, “Why?” Why aren’t 18-35-year-olds investing in homes and what could it mean for the overall market?
The philosophy on home ownership has changed in the minds of Millennials.
More than ever, young people simply don’t want to buy a house. They would rather spend their money on things like traveling and other activities that they believe are going to enrich their lives. Buying a house take a lot of preparation and saving, but Millennials either don’t want to, or aren’t able to meet this requirement.
Millennials live in the shadow of massive debt.
Student Loans, the rising costs of healthcare, and many other factors are making it very difficult for young people to save money effectively, making homeownership a low priority. Not only that, but they remember what happened to their parents during the market crash of 2008. They’re unsure and concerned about investing in a market and economy that fluctuates the way it does.
What Does This Mean for the Housing Market?
According to NPR, the housing market isn’t going to be doomed by this. They claim that Millennials are not abstaining from purchasing homes; they’re waiting until later in life. Experts aren’t sure what this means yet. Some are saying that this shift may result in a rise in housing costs, but others insist that Millennials will come around in time. At this point, all one can do is take advantage of the housing market as it is now. Right now, things are looking good for potential buyers, so act fast.
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