WATCH | Why are so few millennials homeowners? Circa Campus contributor Nick Cioffi starts a conversation.
The number of millennials who can’t afford homes is at a historical low, but an estimated 3 million potential first-time home buyers aren't buying homes, The Wall Street Journal reports.
Market troubles: Over the past decade, the U.S. economy has been desperately trying to recover from the housing crisis of 2008. When the housing bubble burst, the country was left reeling with a heavy recession as a result.
No money, more problems: We all know that millennials are broke; this should come as no surprise. However, it is remarkable that past generations have had the financial stability to break into the housing market, while our current generation has no such luck. Why is this generation different from the rest?
Maybe the answer isn’t as extreme as "avocados on toast," but spending habits are nonetheless important to take into account.
After all, this generation is already dealing with the absurdly high cost of college tuition. Having debt on your shoulders can be a huge burden on your credit and your financial stability. In order for millennials to have homes, they have to have stability -- not just in their finances, but in their lives. Buying a house means dedicating your life to living in one specific spot for a long period of time unless you can afford otherwise.
And for millennials who consistently switch jobs to survive in today’s economy, the stability of staying in one place can be both unappealing and unreasonable.
Is there hope for housing? Even though these rising prices might be hinting toward another housing bubble, it’s still possible that affordable homes could be in millennials’ futures. For some, financial stability might seem far away, but saving and investing now can help tremendously in the future. While this generation focuses heavily on the short term, thinking long-term is a must for anyone who wants to buy a house one day.
As the job market continues to fluctuate, it has been noted that millennials may not be getting the skills they need in school to make it in the workforce.
Takeaway: With soaring house prices and a tight job market, millennials are finding it harder to purchase homes. However, as financial opportunities and stable lifestyles become more promising long-term options, many remain hopeful that in the not-so-distant future, a home of their own won’t be out of their reach.
(The article was provided by Circa Campus in partnership with GenFKD which has fellows on college campuses around the nation. Circa Campus Contributor: Nick Cioffi)