They’re graduating from college, starting new jobs, getting married and having kids. But one life goal that’s eluding a lot of millennials is homeownership, according to a new NerdWallet white paper.
It’s not that millennials don’t want to own a home. In fact, NerdWallet, a personal finance website, found that most millennials would like to buy a home but think they can’t afford it.
In its analysis, NerdWallet looked at a number of surveys and data from government agencies and Fannie Mae to examine commonly held beliefs about the decline in homeownership among younger first-time buyers. Millennials– those born from 1981 to 1997 — are expected to form some 20 million households by 2025.
A Fannie Mae survey found that 57% of young renters cited financial reasons for not buying a home. Those reasons included poor credit, high down payment costs, a low monthly income and too much existing debt as the main obstacles. But even facing these perceived roadblocks, young renters in that same survey are considering buying a home, and 49% said their next move would likely be into a home they own.
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Deborah Kearns is a staff writer at NerdWallet, a personal finance website.
