With a count of 75.4 million people, Millennials are the United States’ largest living population, surpassing the Baby Boomers who’s population consists of 74.9 million Americans. Millennials are those citizens that were born between roughly between 1983-1999, currently those between the ages of 18-34 in 2017. Millennials, being the largest age bracket in the US, are also the largest population expected to purchase homes this year.
Millennials however, also have reservations when it comes to home buying. Most Millennials admit that their largest issue with home buying is having a lack of knowledge about the industry, with their second largest issue being a lack of trust with lenders and banks because of the aforementioned absence of home buying knowledge. Around 32% of Millennials are currently living at home with their parents. Some are waiting for marriage before leaving the nest, others are stuck in an unexperienced rut and simply don’t know how to move out.
Millennials with drive and ambition have the ability to take over the housing market. First time homebuyers are projected to be the bulk of the purchase market in 2017, and 75% of those buyers are predicted to be Millennials. Overall, Millennials are a very strong minded hard working group with the potential to stir up a housing boom, something that would greatly benefit the economy. So what can more Millennials do to ease their uncertainty about the housing market?
Get Finances in Order
When you’re young, you’ve got a drive that will push and motivate you to go full throttle on anything you set your mind to. This is the drive that gives college students the ability to study (or party) all night and get up and be fully functional for school or work for a full 8 hours the next morning. Millennials work hard but we can also be impulsive. We tend to have a “Cross that bridge when we get there” mentality. It’s a combination of our high energy and spur of the moment mentality that causes us to make lots of money but still somehow spend more than we earn. It’s important to get and keep your finances in order when you want to buy a home. You have to plan and save accordingly for your down payment and closing costs. Programs do also exist for borrowers who do not have a full down payment readily available.
Understand the Process
Home buying consists of a lot of phone calls, emails, and in person meetings. The amount of questions you may have as a first-time home buyer can seem overwhelming but questions are good, they are the tool we use to learn. Once you’ve decided on a bank to borrow from, ask as many questions as necessary until you fully comprehend what the entire process is, step-by-step.
Know the Market
Educate yourself on the sales of homes in and around your desired neighborhood. The best way to be sure that you’re not being overcharged on the price of a home is to compare the home you want with others that are similar.
Homebuying is an experience that can only truly be learned by going through the process. Buying a home is a huge step for Millennials, Generation X, and Baby Boomers alike. Times have changed making the availability of homes more abundant through the growth of the economy. If you’re a Millennial, do what you do best. Take life by the horns and own it!
When doing your research always be sure to consult great sources. See the sources for this article below!