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According to reports, more and more millennials are now growing in numbers as potential home buyers. The increasing number of millennials who wants to buy a home in states like Louisiana has been going on for three straight years. The studies also show that they’re generation do not have the biggest debt based on balance, even if student loan debt is quite common among millennial homebuyers.
The number of millennials who are buying residential real estate has dropped down to only 17 percent earlier this year. Compared to the data that was gathered back in 2015, 10 percent of multi-family homes that were made were purchased. While the vast majority of buyers from all generations still choose to purchase newly constructed single- family homes in urban areas, the younger ones choose to buy older homes instead.
According to NAR chief economist Lawrence Yun, millennials would rather live in suburban areas as renters rather than owners. The reports only revealed a clearer picture that most of them are not staying once they have the capacity to get a loan. Yun also said that the average age of a potential homebuyer is 30 years old, which is usually the period in everyone’s life where an individual would begin to consider settling down or even raise a family. He said that although millennials would prefer getting a property in suburban areas like Shreveport, the lack of space and the prices for real estates located in urban areas forces them to look elsewhere instead.
The slow pace of entry- level construction of real estate properties, the increasing price of each property, and the limited availability are the things that make it harder for the young population to get a property in suburban areas.
The survey results show the just how debt affects the purchasing power of buyers to get a home. Their debt is delaying their means of saving for a down payment, which has increased from three years for millennials of postponed savings and six years for the older generation.
53 percent of millennials said that student debt makes it difficult for them to save for a down payment while 44 percent of the Gen X population and 36 percent of the younger boomers said that it was credit card debt that has to be blamed.
According to NAR chief economist, the survey results surprisingly show that millennials actually have the least median amount of student debt if compared to both Gen X and younger boomer buyers. One of the likelihood that there was a recent slow pace in the housing economy is because people are slowly paying down their debt or have decided to delay trading it up.<< Back to the list.