Well I always say I want to keep it real with you guys & lately, something that’s been a big part of daily conversation with the hubs has been our goal of buying a home. I wrote about tips for decreasing credit card debt on this previous post & now here’s another Debt Diary post: Millennial Home Buying – the struggle is real!
We’ve been out of college for a couple years now & have been paying towards a rent for those years. It’s such a crappy concept because, well to be honest, that money just disappears. Unlike a car payment or student loan, at least you’re paying towards something that you own or was productive for you/your career. But with paying rent, it’s basically like hey here’s money so you can pay your mortgage… when it would be so nice to be able to put that towards our own! It’s tough because we could easily afford a mortgage on a great starter home, but it’s the initial down payment & application approval that’s the tough part. I figured we weren’t the only ones since I can count the amount of friends I have that own a home on one hand (& most of them are older!) – so I did some research & here’s what I found…
So I started searching stats on millennials & home buying. Remember, millennial means people born between 1982 & 2004. It’s not just those of us in our 20’s, it includes people in their mid 30’s as well. And although the stats are pretty crazy, I wasn’t too shocked because not only can I relate, but so can all of my friends! Here are some of the stats I found:
millienials contributed $514 billion over the past year, yet still they lag behind where previous generations were at their age
houses & even apartments are too expensive for most young people, whose wages (until recently), weren’t increasing as cost of housing was
more Americans are renting now than at any time in recent history
today’s median age of buyers is 40, are married or living with a partner, & earn a median income of $87,500 annually
only 39 percent of millennials are able to make the standard, recommended down payment of 20% – and 21% put down the bare minimum in order to secure a home loan
about half of the millennials that do buy, get an assist from family members or friends to be able to make the minimum down payment
(you can read the full article here)
Well those are definitely some interesting stats! It makes me feel a little more confident in that we aren’t alone – but when it comes to median income of home buyers… there’s much more to it than just income. Since credit score & overall debt plays a large role in your ability to get a loan, our major debt of going to universities at the young age of 18 makes it difficult to have a great resume for a mortgage loan.
Not only is it the debt, but the fact that you ideally need 20% down – that’s a lot to save depending on how expensive the home you are trying to buy is! Although savings is super important, it’s also really hard to be consistent with putting money into a savings account when you are trying to put large monthly payments towards other areas!
Now, with all of that being said, we know it’s not impossible! And of course I want to have a positive outlook on all of this. I am so grateful for our jobs, the fact that we enjoy them & the fact that there is potential in our market for us to buy something in the near future. To be honest, our goal of buying a home is a small part of the reason we moved to Oregon & got out of SoCal – it’s so much more manageable at a young age. Not only that, but we want some land & that’s incredibly difficult to find in big cities.
We would love to be able to build our own home as well & that is something I am SO looking forward to! For now, we are being as smart as we can with our finances – using tips from my previous debt diary post to get into the best financial situation we can & setting ourselves up to be in a good position when we are ready!
I am excited to hear your thoughts on all of this & would love for you to comment or send me a message on Instagram about where you are at with all of this & how you feel.
After all, I just want to be real & relate to you about what we’re all going through at this age, because it’s definitely not easy 🙂
xoxo – Brewed Blonde