{"id":1270,"date":"2025-01-20T14:13:04","date_gmt":"2025-01-20T14:13:04","guid":{"rendered":"https:\/\/www.mikeclover.com\/blog\/?p=1270"},"modified":"2025-01-20T14:16:16","modified_gmt":"2025-01-20T14:16:16","slug":"how-millenials-can-still-buy-homes","status":"publish","type":"post","link":"https:\/\/www.mikeclover.com\/blog\/2025\/01\/20\/how-millenials-can-still-buy-homes\/","title":{"rendered":"How Millenials Can Still Buy Homes"},"content":{"rendered":"\n
\"\"<\/a><\/figure>\n\n\n\n

Millennials, currently aged 28 to 43, are now the largest generation. They are also the generation that should be buying their first homes right now, and certainly some are. However, only about 52% do own homes.<\/p>\n\n\n\n

Back in 1990, the average age of first-time buyers was 29. Now it has jumped to 38 \u2013 up from 35 in 2023.<\/p>\n\n\n\n

It\u2019s not because the majority don\u2019t want to own homes.  In fact, more than 70% say homeownership is part of the American Dream. It\u2019s simply because the economic climate has changed drastically.<\/p>\n\n\n\n

In 1990, the median income was only $30,000, and at 10%, interest was even higher than it is now. However, the median home price was only $79,100. That equated to $2,500 per month income and $694 per month for a house payment, or 28% of the average person\u2019s income.<\/p>\n\n\n\n

Now, while average income has risen to $80,610, or $6,717 per month, the median home price is $416,880. At 7% interest, payments are $2,773, or 41% of monthly income.<\/p>\n\n\n\n

At a time when many millennials are still carrying student debt, and inflation is the highest in 40 years, it has become harder and harder to qualify for a home loan, let alone save up for the down payment and closing costs. Some millennials are willing to forgo some lifestyle pleasures in order to own a home. Others are not.<\/p>\n\n\n\n

In major markets across the U.S. it is now cheaper to rent than to buy \u2013 but buying can still be a wise decision in terms of long-term finances.<\/strong><\/p>\n\n\n\n

If you are a millennial and plan to stay in one location for the foreseeable future, do consider buying, as it has some important benefits.<\/p>\n\n\n\n