The millennial generation is considered to be one of the best hopes for getting the US housing market moving; however, there are some obstacles in the way of this as a solution.
Many Millennials have large amounts of student debt and there is also the fact that it is not as easy for first-time buyers to get a mortgage. Many Millennials do not see buying a house as being as important as it used to be, and many want to move around and relocate to a new city if they find a new job ‒ renting makes this easier.
There is also the fact that the job market is not what it once was. The rate of young adults purchasing their first home has dropped this year to an all-time low, with the main reasons being that young people are not purchasing property because they do not have enough savings or they feel they have too much debt. Those who have debt will undoubtedly find it that much harder to get a mortgage and are less likely to move away from home.
A report from Goldman Sachs shows that those who have an average amount of student debt are not put off buying a home, however, those who have a minimum of $50,000 in student debt find it much more difficult. There has also been a decline in real wages for those who do not graduate college, which means that more people want a college degree and take on large amounts of debt as a result.
Despite these problems, most millennials intend to buy their own home one day.