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Millennials As Home Owners

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Several posts ago we shared an interesting article with you on the decline of entrepreneurship among America’s youth. With this post we continue the youth-related theme with an article from the Huffington Post on “Millennials” and their impact on homeownership in the US.

This piece, authored by Christina Lavingia and titled “Why Millennials Will Make it Easier for You to Buy a House”, takes an opposing position to the argument that  today’s youth, having been overly traumatized by the impact of the great recession, is not interested in home ownership.

Citing surveys conducted by Zillow and Young Invincibles, the youth of today are just as interested in homeownership as prior generations.  Where the problem lies for Millennials, and again issues we have raised in earlier posts, is in the state of their finances and the overall economy. Key factors including,

  • High student loan debt,
  • High unemployment,
  • Tighter credit requirements for home buyers, particularly first time home buyers,

make homeownership a difficult goal to reach for this younger generation. So while many Millennials are renters today, that fact alone should not be an indication that this generation has given up on homeownership, but more than that they are dealing with the hand the greater economy has dealt them and have been ‘forced’ to delay their goal of homeownership.

Taking this one step further, and resulting in the title for the article, Ms. Lavingia explores how the current state of the Millennial generation could impact housing demand and lending practices in the near future. While not all positive, the end result, if realized, would make it easier for many Americans to purchase a home.

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