Millennials take a lot of heat for being the first generation to experience the convenience of technology and shift of the culture. But despite the glory of the internet and the planet of the apps, the millennial generation has been forced to overcome shifts in the economy during the most arduous times.
Before the infiltration of the coronavirus, the cost of attending college was at an all-time high, and the Great Recession loomed during the time many were entering the job market. Yet despite all setbacks, today millennials account for 37% of all homebuyers. However, within their generation, the older age bracket (ages 29-38) makes up 26% of all homeowners, whereas the younger group (ages 21-28) accounts for less than half that at 11%.
Sure, the younger generation has paved a new age where many are putting off marriage and children longer than any generation before. But where do the biggest differences lie between these groups, what hurdles are they facing now, and how do they overcome them?
- Student Loan Debt
It’s easy to feel weighed down by debt when most of it was accumulated under the promise of landing a job to counteract it. According to the U.S. Federal Reserve, the average monthly student loan payment ranges between $300-$500, depending on the degree and institution.
Fortunately, there are ways for you to combat high monthly payments and gain control over personal finances including: debt consolidation options, loan forgiveness programs, and seeking help from a financial advisor. Debt can feel overwhelming when there is no end in sight, but feeling more in control of your assets sometimes just takes one small step at a time.
- Job Instability
Finding a job throughout the Recession was hard enough, and now many millennials have lost their trades due to the stay-at-home era. It can be challenging to save and plan when there is so much uncertainty surrounding the future. It may also be difficult to find a lender that will approve a mortgage to a borrower with fluctuating income history.
The silver lining of this era has been the mainstreaming of remote working. This has been wonderful for those that are interested in flexibility and exploring career opportunities. Now that being in close proximity to the office isn’t a strapping decision, buyers are looking to other areas that may be more affordable.
- Difficulty Saving
Outside circumstances can turn saving into a never-ending game of catch-up. Budgeting is by no means an attractive term, but it is a great step on the road to becoming a homeowner. Logging your expenses and trimming the fat – so to speak – is a great way to hold yourself accountable and see where you can make some changes.
Research your ideal neighborhood and compare that to a home affordability calculator. This will give you an idea of what you can afford where, and how long it might take you to save up.
Also, putting the standard 20% down isn’t always essential, but it helps. There are low down payment options available if time doesn’t allow for saving. Local mortgage lenders will offer more flexibility with lower down payment loan programs than most big box lenders will be able to offer.
If you are interested in buying your first home and need assistance, please reach out to one of our mortgage loan specialists who can assist in answering your questions at (760) 930-0569.