Having come of age in one of the worst economic recessions in recent memory and perhaps even having watched their parents or relatives lose their homes when the housing market crashed, many millennials are tentative when it comes to purchasing homes. When their parents were in their twenties and early thirties, they might have already been homeowners. Today, only a small fraction of this demographic own homes. Why is that?
Though the economy and the housing market have largely recovered from the recession, the scars still linger. This means that many younger people are simply not willing to make the leap and invest their time and money into buying a home. When you look at the data about the economy, however, it’s obvious that now is actually the perfect time to buy. Unemployment is way down. House values are up. There are a wide variety of jobs available right now that just did not exist ten years ago.
Fewer young people have credit cards than ever before. Again, this may partially be due to watching relatives run up huge credit card debts and then collapse under the weight of it. Others may already have poor credit and are suffering under the burden of student loans, making it seemingly impossible to get the loan that most will need in order to buy a home. Many millennials never got credit cards because they did not see the appeal of a card that was essentially designed to run up your debt. This means they don’t have credit. Luckily, there are lots of solutions for individuals who do not have credit or who have poor credit.
Student loans are a huge topic of discussion right now. In order to be able to get a high paying job, you likely had to pay quite a bit of money in order to go to school. Unless you were able to pay for your schooling outright or were funded by a parent, you probably have a loan following you around. Adding another loan to the mix might not sound like a good idea, however, just like those with poor credit, there are lots of options for those that already have one or more loans but still want to buy a home.