You’ve probably heard a thing or two about younger generations not purchasing homes. These groups have had to face more challenges and have different opinions on purchasing when it comes to this type of investment. Due to a combination of student loan debt, the high cost of city living, and rising house prices, many people can’t even look into purchasing homes.
The good news is some millennials are still planning to purchase homes. According to Business Insider, they are relying on four strategies to help get to this goal.
1. They’re settling for smaller homes
Compared to older generations millennials are renting for longer, and buying smaller homes. According to a Clever’s survey many millennials say 1,700 square feet is enough space.
2. They’re skimping on the down payment
These individuals are having a hard time coming up with enough money for a downpayment. Saving up 20% of a home’s value is pretty impossible for this group.
3. They’re getting help from family
Crowd funding is a term that has become increasing popular within this group. These individuals are seeking financial help from their families and friends.
4. They’re heading for the suburbs to get what they want
Many millennials are finding that homes are simply too expensive in the urban cores where they currently live and work.
When it comes to what is important for these young home buyers, 32% said they're looking to gain more space. They are also looking for features that are hard to find in the city. About 51% of millennials said that a garage was important, and more than 40% said a large kitchen and room to grow into were must-haves. So, there you have it, millennials are buying homes, just much later than their parents were able to. They're achieving home buying goals with different methods,
Curious to find out more reasons millennials are buying later in life? Check out this video produced by CNBC.