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Millennials are unable to afford homes, but there is hope for the future

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Millennials are unable to afford homes, but there is hope for the future

WATCH | Why are so few millennials homeowners?  Circa Campus contributor Nick Cioffi starts a conversation.

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In this Thursday, April 27, 2017, photo, a "For Sale" sign is posted in front of a home in Charlotte, N.C. On Wednesday, May 24, 2017, the National Association of Realtors reports on sales of existing homes in April. (AP Photo/Chuck Burton)

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.

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In this Monday, Feb. 27, 2017, photo, real estate signs mark the lots near one of the new homes for sale in a development for new homes in Cranberry Township, Butler County, Pa. Americans retreated from buying existing homes in February, a pullback after sales in January had surged to the fastest pace in a decade, according to information released Wednesday, March 22, 2017, by the National Association of Realtors. Over the past 12 months, sales are up solidly. (AP Photo/Keith Srakocic)

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. 

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FILE - In this Wednesday Feb. 1, 2017, file photo, Brooklyn College students walk between classes on campus in New York. Student loans can be expensive, but a few preventative steps can help avoid unnecessary costs. The Consumer Financial Protection Bureau recently issued a warning to consumers to pay close attention to their personal information on record with student loan servicers as errors are popping up that can cost borrowers hundreds of dollars more in additional student loan debt. (AP Photo/Bebeto Matthews, File)

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.

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HOLD FOR RELEASE UNTIL 12:01 A.M. EDT. THIS PHOTO MAY NOT BE PUBLISHED, BROADCAST OR POSTED ONLINE BEFORE 12:01 A.M. EDT. - In this Oct. 6, 2011 photo, Gan Golan, of Los Angeles, dressed as the "Master of Degrees," holds a ball and chain representing his college loan debt, during Occupy DC activities in Washington. As President Obama prepared to announce new measures Wednesday to help ease the burden of student loan debt, new figures painted a demoralizing picture of college costs for students and parents: Average in-state tuition and fees at four-year public colleges rose an additional $631 this fall, or 8.3 percent, compared with a year ago. (AP Photo/Jacquelyn Martin)

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.

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(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)

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