2014 saw a rise in the number of millennials buying their first homes, and according to the 2015 National Association of Realtors Home Buyer and Seller Generational Trends study, they actually comprised the largest percentage of homebuyers last year at 32 percent. Looking at this current trend, there are quite a few reasons why millennials have been opting to buy houses.
Rising Rent Costs
In a recent study by the National Association of Realtors, the gap between rent costs and income is becoming unsustainable, with rent increasing by as much as 15 percent over the past five years and renter income increasing by only 11 percent. Most people, particularly millennials, are finding it hard to keep up with the rising rent costs and so opt to pay a fixed monthly payment for a house.
With the strength of the job market, more millennials have opportunities to find a job that can help them pay for owning a house. In fact, the unemployment rate for adults between ages 25 and 34 fell to 3.4 percent last February, according to data from the Labor Department.
Help from Parents
Some millennials, however, might find it hard to settle with a house’s down payment, compelling their parents to lend a hand. In a recent poll conducted by loanDepot, 17 percent of millennial-aged children’s parents expect their kids to purchase a house in the near future, and half of them are willing to help with the down payment.