Millennials Want Small, Affordable Houses
A lot of people think young people won’t ever buy a home. Only 33% of people between the ages of 25 and 29 own a home—lower than previous generations. But recent surveys have found that millennials are finally starting to enter the market—albeit slowly.
We get the reluctance. The financial crisis began in part because people bought homes they couldn’t afford, and those homes became a huge financial burden both for them and the economy.
But a home loan doesn’t have to mean huge debt and a McMansion in the suburbs.
Many young couples today are tired of living in apartments that feel impersonal—where they can’t make any changes. They’re looking for small, affordable, well-built houses that are close to many amenities.
A recent MarketWatch article rounded up a bunch of real estate surveys about what young people entering the housing market want. No. 1 is amenities. They don’t want to be stuck in the suburbs with long commutes to work or to coffee shops. They want walkability.
They want good schools. Fifty-two percent of millennials said the quality of a school district could be a deal breaker compared to 31% of all buyers.
And they want smaller, flexible homes—homes that are cost and energy efficient. They don’t want to pay to cool or heat rooms that are rarely used. They want the house to be sustainable, both environmentally and economically.
Owning a home also can be sort of like a forced savings plan. Your monthly mortgage payment most likely is more than what you were paying for rent, but you might not have been saving or investing the extra money you had left when renting.
After you factor in the lucrative tax deductions of owning a home and the fact that every month that passes the equity—the amount you could sell your house for minus what you still owe on it—grows. Buying a house is often a smart money move.
In a lot of ways, houses reflect people’s values. As long as buying a house continues to make smart financial sense, more millennials will buy them. They just probably won’t look like the houses that were built during the build-up to the housing crisis.
Fitzsimons Credit Union wants to help you get into the house that’s right for you. We will be hosting our First Time Home Buyers Seminar on March 16th. Our partners at Centennial Lending are here to guide you through the process of purchasing your first home and answer any questions you may have to get there.
If you are already a home owner and are looking for ways to finance home improvements take advantage of our fixed equity loan and for a limited time receive no closing costs. Your locked-in rate and payment won’t change, meaning there are no surprises and giving you peace of mind. Offer expires 03/31/2017