3 Challenges & 3 Solutions For Millennial Home Buyers
Q: I have a good job and I’d like to own my own property, but real estate prices are so very high, it’s hard for me to justify paying that much money to own. Are there any other options for me? Jessica, Hoboken, NJ
A: Most Americans of all ages want to realize the American dream by becoming homeowners. Millennials recently surpassed baby boomers as the biggest population group in the US. 3 of the biggest challenges millennial home buyers currently face despite still historically low interest rates are: 1) student loan debt has tripled in the last decade 2) starter homes are in short supply in many local real estate markets and 3) credit score requirements for home loans are higher than they have been in most of recent history. Despite these daunting challenges, here are 3 potential solutions for millennials to become homeowners: 1) instead of buying an owner-occupied place where prices may be out of your price range, consider renting where you live and buying investment property in a more affordable area 2) consider moving and commuting or telecommuting to allow yourself to be able to afford to buy–in many cases, the further you’re willing to travel, the more affordable it may be to buy property 3) consider partnering with a friend, colleague or significant other to buy property if you’re having trouble qualifying for a home loan yourself. Thanks for your question, Jessica.
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