Updated: May 9, 2018
It looks like the time has come. Love them or not, millennial's are making it loud and clear, they want to become homeowners. With home prices sky rocketing across the US, they are focusing in on their slice of the pie. Millennial's are ready to show they are all grown up and ready for the next chapter in their journey. Although real estate has become unaffordable in many US cities, they are eyeing the midwest and the south to find the most affordable homes. A recent survey showed 80% of millennial's stated buying a home was a priority for them. It also showed the top 3 choices as Pittsburgh Pennsylvania, Oklahoma City Oklahoma, and Omaha Nebraska.
Inventory and price continue to play a huge factor locally in California pushing millenials to look out of state in certain cases. The success of start-ups like Netflix, Spotify and Uber have led to predictions that future Americans will choose not to own and drastically shape the future consumer society. But when it comes to big purchases — the kind that can be very good or very bad financial decisions — millennial's are not that different than past generations. A high percentage of millennials already own homes and notably most had it on their wish list that did not already own. It seems the perception of what they wanted surprised many of us. They are actually looking to put down roots regardless if its a rural or metropolitan area.
Another fascinating trend is more millennial's dont mind buying, selling and buying again as compared to buying and holding a property for decades.
Ladera Ranch Home Loans has a great checklist you can use before buying a home just for millennial's:
Have you saved for a down payment?
Do you have an emergency fund?
Do you plan to be in the area for five years?
How much home do you want to buy, need to buy and can afford to buy?
5. How will you balance a mortgage with retirement savings contributions?
6. How will you balance a mortgage with existing debt payments?
We recommend aggressively paying off student debt before buying a home since it's hard to have a lot of financial obligations and a mortgage is a big one. Pay off a car or student loans before buying so you have less monthly obligations if possible and it may even help you qualify. If you are interested in learning more about Ladera Ranch Home Loans and how we help millennial's become homeowners call 1-877-353-9527