The American Dream -Home Ownership for Millennials
Ask someone what’s the American Dream, and almost every response includes homeownership. For all of us homeowners, we have certainly seen our dreams come true through wealth generation and invaluable lifestyle and community benefits.
Recently we read a Forbes article by Nigel Wilson titled, “U.S. Millennials: Home Ownership And The Growing Chasm Between Aspiration And Reality.” The article illustrates a concerning statistic – unlike previous generations, most millennials (ages 25-40) are not able to experience homeownership due to a lack of affordable housing, high rents that prevent saving for a down payment, and student and medical debt. The study also found that nearly 20% of millennials are living with family.
We know the incredible benefits of homeownership, to name a few:
• Rents are “100% Interest” with no appreciation!
• Homes appreciate at a much faster pace than inflation
• Homes have significant tax advantages
• Pride of Ownership
Freddie Mac (the Federal Home Loan Mortgage Corporation) states that the average millennial homeownership rate was 43% in 2019, which was 22 percentage points below the overall national rate. The gap among some of the top 20 metropolitan statistical areas (MSAs) is even wider. But there’s hope. According to mortgage broker Justin Buehring, Highland Residential Mortgage, several low down options are available for new home buyers. For millennials, it’s important to find a REALTOR® and lender you can trust. He often talks with people that are more ready than they realize to buy a home.
From our Team Skally experience, it’s more cost-effective to own your own home than pay rent. For one client, within ten years of homeownership vs. renting, her net gain could be almost $1,000,000. With another, a recent home purchase appreciated almost $100,000 in a very short period of time.
How can you help this next generation experience the American Dream? Check out https://www. wshfc.org/. The Washington State Housing Finance Commission can point millennials, and anyone looking for their first home purchase, to lenders and programs that can help. Like Justin Buehring says, find a REALTOR® and mortgage broker you can trust. And don’t be afraid to encourage potential homeowners into looking at their options. The market is changing, and this could be the perfect time to experience the American Dream, to help someone love where they live, and to start creating personal wealth.
As always, we wish you and yours the very best!
Matt and Christina
Matt & Christina are Team Skally, top real estate agents in the Seattle Metro with expertise in luxury homes on the Eastside including Bellevue, Newcastle, Mercer Island, Renton and Issaquah. Their client testimonials say it all - they deliver exceptional service and record-breaking results. Recognized as top agents on social media by Property Sparks, Diamond Award finalists for best client service and regularly featured in online and print publications including Newcastle Life Magazine. In addition to serving clients, Matt and Christina love family time with their two boys and Leo, the Goldendoodle, as well as volunteering in the community.