Claudia Hargrove Thoughts
A higher salary and the ability to save are the two most important characteristics missing for young people who want to buy a home.
The millennials have no savings, but are interested in purchasing a home in the next 5 years, so they are willing to make sacrifices for the down payment and buy their first home.
80% of millennials say they want to buy a home—but most have less than $1,000 saved.
New data from Apartment List shows that, although 80 percent of millennials would like to purchase real estate, very few are in a good position to buy, largely because they have nothing saved. According to the report, “68 percent of millennials said they have saved less than $1,000 for a down payment. Almost half, or 44 percent, of millennials said they have not saved anything for a down payment.”
Depending on where they are looking to buy, given their current savings rate, millennials are 10 years or more away from home ownership. Young residents will have to be exceptionally patient: Odds are they won’t be in a good position to buy an apartment for “almost 24 years,” or “until the year 2041.
In order to make buying a realistic part of a five-year plan, most millennials will have to start saving more. Luckily, research has shown that millennials are actually good savers, though their priorities are different and distinct from those of other generations: They’re generally eyeing short-term goals rather than long-term ones. But, if becoming property owner’s matters enough to them, they may well be able to make their home-buying dreams come true.
The full report can be retrieved from here: