Some Millennials Say They Plan on Renting Forever
Although Millennials seem to be taking over the housing market, nationally, 12.3% of Millennial renters say they plan to keep renting.
Last year, 10.7% said they plan to always rent, up over 2%, a study from Apartment List said.
In fact, nearly half of Millennial renters have no down payment savings, according to the study.
Another major barrier for this generation? Student debt. Even those who are debt-free are only saving about $100 more a month than those who have the burden of paying off loans.
Almost half of Millennials with no college degree have $3,221 saved for a down payment, while 50% with a college degree and debt have $8,200 saved for a down payment.
Meanwhile, 58% of Millennials with a college degree and no debt say they have an average of $18,914 saved for a down payment on a home.
According to the report, only 25% of Millennial renters will be able to afford a 10% down payment on a median-priced home in the next five years.
If student debt payments were forgiven, then the amount of renters able to afford a down payment would increase to 38% nationally, and more than 50% in some metropolitan areas like Minneapolis and Houston.
San Jose has the highest amount of Millennials who think they’re going to rent forever, 18.2%. Meanwhile, Nashville, Tennessee has the lowest amount, 3.6%.
However, 69% who say they plan on renting forever say it’s because they can’t afford to purchase a home, while 70% of those who are waiting to buy a home also can’t afford it at the moment.
Posted on housingwire.com on 11/21/2019.