The Millennial First-Time Home Buyer Dilemma

India Kinchelow
Mar 5, 2023
2 min read

Updated: Jul 15, 2023

Is home ownership still possible for the Millennial First-Time Buyer?

The Challenge

Americans in their 30s and 40s- aka Millennials, are often referred to as the most educated, innovative, and tech-savvy generation of our time. However, as they enter their thirties and forties, they face a challenge that their predecessors didn't: buying a home.

Despite earning high incomes, many millennials are struggling to afford the cost of living, particularly when it comes to purchasing a home. A growing population of millennials over the age of 35 earn well over six figures, yet many lack adequate personal savings.

According to a recent study, the average millennial has only $50,000 in savings, which is not enough to afford a home worth at least $750,000. As a result, they often delay their home purchase to save for a down payment.

There's more!

Home prices keep rising, and would-be millennial first-time home buyers are left with the daunting task of trying to keep up. In the past three years, homes have become 80% more expensive, and rents are expected to continue increasing with no end in sight. The cost of living has outpaced wages, making it challenging for millennials to afford the things they need and homes that suit their standards.

Unfortunately, there is no first-time home buyer or down payment assistance programs available for high-income earners, which only add to the challenge. This conundrum has many would be millennial first-time home buyers feel like they will be renting forever because they simply cannot afford to purchase a home. Many find that the only solution is to move back in with their families to save money, further delaying starting their own families.

What is the answer?

Buy a home, any home! Millennials need to buy a home sooner rather than later because waiting only puts more distance between their goals and wealth building.

Renting is expensive, with an average of $42,000 to $54,000 spent per year. Owning both stabilizes finances and builds wealth. The money normally spent on rent, starts building equity. And when considering inflation on the average $1 million home price in California, that's at least another $100,000 after only one year.

Queen of Jumbos can help!

The Millennial first-time home buying dilemma is a real challenge and it's affecting the financial stability and future of many young adults looking to build a future. The good news is that there are new mortgage options available to overcome the challenge.

As a mortgage specialist who understands the challenges facing these high-income millennial first-time home buyers, I am uniquely equipped to help millennials crush this home buying dilemma. Whether the road block is down payment, credit score, reserves- I can help you buy a home before you the opportunity slips away.

Don't let wait yourself out of a chance to own while you can.

Questions?

Contact me today to learn more (714) 916-7961.