The generation segment that experts have labeled “Millenials”—those born between 1981 and 1997—have caused housing professionals to pause and lift an eyebrow. No longer is home ownership a dream many young adults want to realize quickly. Instead, what we’re discovering here at GVC Mortgage, and across the mortgage lending market, is that many Millenials are deciding to rent instead of buy—and here are a few reasons why according to Mortgage Professional America.
1. Student Loan Debt
It’s no secret that students are graduating from colleges and universities with more student loan debt. In fact, Student Loan Hero reports that the average student at a four-year public university will graduate with over $25,000 of school loan debt. You can easily add another $15,000 or so to that number if the student graduated from a private institution. These numbers alone prevent many individuals from homeownership, especially in light of currently tight mortgage credit standards.
2. Shift in Values
Many Millenials are delaying when they decide to “settle down,” or in other words, choose to get married and/or have a family. Therefore, many young people choose to rent in order to be less tied down and have more flexibility in where they live. Overall, what was once the “American Dream” to own a home and settle down doesn’t seem to be as much of a priority to modern-day Millenials.
So what does that mean for the housing market? Simply put: Renting a single-family home in lieu of purchasing a home is becoming more popular. While our team at GVC Mortgage understands these changes in perspective, we also don’t want Millenials to be dissuaded by their culture to consider homeownership. In fact, with several different mortgage options at your fingertips, you can find a few reasons why home ownership might be a better value in the long run.
If you’re currently renting a home but you wonder what it might look like to own, don’t hesitate to contact our team at GVC Mortgage at (317) 564-4906. We can see whether you qualify for a home loan and how that translates to your monthly and long-term financial plans. Our mortgage professionals would be glad to help you decide whether to keep on renting or consider purchasing your first home in the greater Indianapolis area.
Sources:
“A Look at the Shocking Student Loan Debt Statistics for 2017.” Web. https://studentloanhero.com
http://www.mpamag.com
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