What’s the clog in the wheel of home ownership for millennial?

Millennials. So much said about them, so much (or so little, according to some) being done by them. Why then does it seem like a host of them aren’t just buying homes or investing in land? Is it a mindset thing, or are there real issues here?
There is a whole host of reasons(asides the usual suspects: rough job markets, unavailability or scarcity of starter or mid-price homes or lands with good, verified titles on the market), including personal preferences and economic disadvantages, that explain why the homeownership rate for millennials is arguably seemingly lower than that of their parents and grandparents.

For one, millennials are renting for longer in locations that tend to be pricey, making it harder for them to save up for an eventual down payment or full payment of a home or land investment. Rising home and rent prices can make it difficult for many first-time buyers and young people still establishing their careers to save for a down payment.

The affordability problem remains. In markets where prices have soared, making buying a home problematic even for millennials’ older and money-backed peers, buying even the smallest of homes is simply out of the question. By the time millennials have saved enough to make an initial deposit of full payment for a home or land in in-demand urban locales, they’d probably be worrying about financing their children’s private university tuition and just wouldn’t bother, pushing it off for a later that never comes.

Millennials routinely give a verdict as to why they aren’t buying homes, and the new wave of conducive “shared space living arrangement” (sharing space with a sibling, a roommate or housemate doesn’t help the situation. Instead of venturing off to live independently, or pairing up (married), many millennials now opt for some kind of “untraditional” living relationship once they reach adulthood, sharing their living space with a non-partner.

It’s no surprise that the cities with the biggest affordability problem have seen an increase in these sorts of living arrangements, in which residents have their own small rooms (sometimes shared) and then large, common spaces, such as kitchens and living rooms.

Also, it is surprising to learn just how much one’s chances of homeownership increases — by more than 10 percentage points, if their parents were homeowners. Typically, the bulk of these people have learned the value of a home. They feel like homeownership represents stability, as though it represents “I’ve arrived.”

Millennials are wedding later — and less. In 1960, the average age women and men first married was in their early 20s. Today, the median age for a first marriage is closer to 30. Delayed marriage has one of the biggest impacts on their low homeownership rate.

Conversely, maybe young adults aren’t buying homes simply because they don’t want to. For an unmarried person who hasn’t settled down or found a long-term career, homeownership doesn’t make a lot of sense. A majority of these people, if ever, buy homes or landed property mostly for investment purposes. This seems to make more sense for these folks.

Some millennials are mostly first-time buyers and they are competing against repeat buyers who have more buying leverage and experience.

Advise for millennials
Buying a house might seem harder for millennials than it was for their parents’ generation, but that doesn’t mean all hope is lost. Depending on where you want to live, how much debt you have, and how much you have saved, buying a house might not be out of the question— if you’re willing to compromise.
True, some of it all boils down to myth, myths about millennials out there that make it seem like none of us are interested in making the investment in a home. It’s probably more about the fact that millennials are changing the real estate market because we’re looking for different things than the generation before us.
Still, buying a home is a serious decision that can be overwhelming, stressful, but ultimately, very rewarding.

Here’s a few things to bear in mind:
When you think of buying a house, you probably think about money. Undoubtedly, it really is as expensive as you think it is.
There is always something that comes up that makes things even pricier.
Real estate sites include lots of photos of houses that are for sale, but you’ll quickly notice that you cannot trust them, ever. Photos can be tricky! Go look at the house in person even if you aren’t into it online. as a millennial, we are drawn to aesthetically pleasing homes and decor, but please remember that you can change the way the house looks.
Once the process begins, things happen quickly.
It’s a big financial adjustment. Owning a house is not just expensive, it’s a completely different financial situation, and it’s a lot to prepare for. You take responsibility for everything, financially and otherwise, once you buy a property.
For first-time buyers looking to become homeowners this year, experts say do your homework: determine your budget, and prioritize your requirements.

So, millennials, own your home or landed property if you’d like. It’s not mission impossible, and nothing beats a real estate investment. Real kudos to you for starting out early!