Home Business The Real Reasons Millennials Aren’t Buying Homes

The Real Reasons Millennials Aren’t Buying Homes

ShannonJuly 28, 2019
Finally, we bring you the reason why young people are not buying houses. Credit: Shutterstock

The Number One Reason Why People Are Not Buying Houses….

The number one reason why people are not buying a house is a lack of cash flow. Basically, people are not making enough money to support the lifestyle of being a home owner. Getting the money for the down payment and mortgage is just the beginning. You will need to pay for utilities, taxes, furniture, and repairs. It costs a tremendous amount of money to keep up with a home. Many Millennials simply do not have the income necessary to tackle this responsibility.

Unfortunately, this probably will not change any time soon. Over ten years after the Great Recession, housing prices are beginning to rise again. The only issue is that wages have not improved much at all. And, according to some experts, they believe that the housing market may be due for another correction in the near future, which would bring prices down. However, the issue is a bit more complicated than that. Check out this video by Graham Stephen, where he explains the projected future of the real estate market.

In over 80% of the United States, the price of a mortgage has risen above the average salary. When Bankrate polled people, 51% of people say that they could not afford the monthly mortgage payment. Another 41% said that they could never save or borrow the amount that is necessary for a down-payment. Other reasons given were too much existing debt, a bad credit score, or the perception that house prices are ridiculously expensive. Many people say that the money simply was not worth the experience of becoming a home owner. One of the smallest groups (less than 20%) say that they simply did not want a house, and preferred to rent, because it eliminated their responsibility.