New Generations Don’t Make Enough
Credit card debt, student loan debt and high cost of living are some of the factors cited by Bankrate for reasons people can’t afford a home.
One common trend the survey found across Millennials, Gen X and Baby Boomers? Their income isn’t high enough, and that is what’s holding them back from buying a home.
There were 52% of Millennial non-homeowners who wish they owned a home that said their income wasn’t enough; 54% of Gen Xers and 55% of Baby Boomers shared that same sentiment.
Beyond that, the survey showed that just over half of all U.S. adults said they didn’t know the minimum down payment required to buy a home.
Nearly a quarter of Millennials say that student loan debt is holding them back from buying a home, while 15% of Generation Xers and 5% of Baby Boomers said the same.
Millennials are also turning to assistance programs and their retirement savings in order to make a down payment on their first home, Bankrate said.
Other than dipping into other savings, 33% of Millennial homeowners said they used a down payment assistance program or grant, while a similar amount of Gen Xers, 27% to be exact, said they also used an assistance program.
Although coming up with the money to make a down payment seems to be a struggle for most generations, 53% of Millennials, 47% of Gen Xers and 45% of Baby Boomers said they saved up enough money to make a down payment and afford the closing costs of their new home.
Posted on housingwire.com on 9/12/19.