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Finances Are Preventing Millennials From Buying Homes

Millennials are a bit more timid when it comes to buying a home. One of the biggest challenges that prospective millennial homebuyers face comes in the finances.

"When asked how many years they were away from that goal, the largest portion, 65%, estimated it would be one to five years before they were homeowners. Their biggest reason for the delay: finances," according to HousingWire, which cited a recently conducted LendEDU survey.

Unfortunately, the growing amount of debt that millennials face has made it more difficult for them to afford a home. Meanwhile, the survey also showed that more than half of the millennial respondents also felt that the lack of knowledge on mortgages prevents them from becoming homeowners.

Millennials also happen to be on pace to hold the most mortgage debt, according to a July 2019 report from Experian.

"With many millennials now well into their 30s, they are on a quick pace to hold more average mortgage debt than any of their peers," according to the Experian report.

"In the first quarter (Q1) of 2019, millennials held an average of $222,211 in mortgage debt, according to recent data from Experian. That's a 5% increase from Q1 2018 and is one of the largest mortgage debt increases seen by any generation in the past year."

Unfortunately the odds seem quite stacked against millennials when it comes to gaining homeownership and even after they receive a new mortgage.

To learn more about the problems millennials face when trying to acquire a home and what the homeownership outlook looks like for the demographic, click on the image above.

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