Housing Issues Millennials Face
What Can Be Done?
In many years passed, one of the American dreams was to buy your own house. This ownership represented more than just buying your own home. It represented the ideas of upward mobility in American society and achieving the idea of achieving the American dream. Now, it can be said that the dream is still there, but it’s just much harder to reach than in the past. Millennials now face many big issues that impact the reaching of this goal. These issues range from economic issues to the lifestyles that many young people’s lives that would make home ownership unfit.
Finances
One major issue that is faced for millennials and housing has to deal with finances. Housing prices are on a steady increase, that is outpacing what the average millennial will make. According to the U.S Bureau of Labor, housing prices are 55.99% higher in 2019 compared to housing prices in 2000. Along with this number, it is estimated that the average housing price in the U.S is $226,800. This is a number that has a deep impact on younger people and home ownership.
Bankrate would go on to find that 63 percent of young homeowner regret buying their homes. This major find is an important one, as it was found that many young home owners did not expect all of the extra coats that come with buying a home.
Lifestyle
Another great factor that also plays a big role for millennial homeownership has to deal with the lifestyle choices many millenials choose. According to pewsocialtrends, marriage rates have significantly fallen. This is something that would have a great impact on the choice of homeownership. As in the past, it was expected for someone to move out of the house and to get married. Now this trend is different as many would not be forced into the idea of homeownership based on marriage life.
Another aspect is choosing higher education. While is can be seen that the average income for college graduates has increased, the average student debt can also be seen to increase. With this, there is a factor of trying to pay back those student loans, which could greatly impact on how much money someone could put into homeownership.
What is Being Done?
Despite the problems that millennials face when it comes to home ownership, most millennials still report wanting to own a home. Until the issues that younger people are facing are overcome, there are a number of things being done to combat these housing issues. One of the biggest things that is being done to combat the increasing difficulty of homeownership is living with their parents. It estimated that 23 percent of millennials live with their parents, which is about a 13.5 percent increase from 2005. This may be an important number, as it shows that staying and living with one’s family may be something many more millennials may consider for their living options. Another thing that is being done is renting. It can be estimated that with owning a home there will be a number of expenses that the owner would have to pay for. Therefore is it is much cheaper for someone to rent a home or apartment as opposed to owning.
The Bottom Line
In today’s society, owning a home does not hold the same significance that it once did. Along with not holding the social value it once held, it can also be a very expensive option to consider if one is not financially able to afford one. With this, many millennials are finding different ways to get affordable housing options. Being that the youth is the future, maybe this will lead to major changes in the housing market. As of now, it can ultimately be said that with the costs of owning a home, it is more affordable to find other housing options.
