Published by FOX Business | September 16, 2023
With such barriers into the housing market, about 1 in 5 millennials don't believe they will ever buy a home, according to a recent survey conduced by real estate brokerage Redfin.
A growing portion of millennials believe they have missed the boat on homeownership.
Today’s housing market is posing significant issues for any buyer and seller as interest rates and housing costs remain heightened. With sellers staying out of the market, low inventory exacerbates the problem, and it results in rising home prices.
With such barriers into the housing market, about 1 in 5 millennials don’t believe they will ever buy a home, according to a recent survey conduced by real estate brokerage Redfin.
However, millennials – those who were born between 1981 and 1996 – have been faced with financial setbacks hindering their ability to buy a home before, including entering the labor force around the Great Recession, Redfin chief economist Daryl Fairweather told FOX Business.
It not only set them back in terms of their careers, but it dissuaded them on “the idea of homeownership being a safe investment,” Fairweather said.
As a result, millennials began to delay buying their first home and in some cases, bought them at a later age than their parents. Even when they did, nearly 40% of homebuyers who are under 30 used either a cash gift from a family member or an inheritance to afford a down payment, according to separate Redfin survey conducted last spring.
When the pandemic gripped the nation, some millennials were able to take advantage of record low mortgage rates and buy their first home, according to Fairweather. However, not everyone was able to take advantage of that window.
