Millennial home buyers have caught some bad press over the years for being late to the home buying party. But as any adult under the age of 40 can probably tell you, the housing market hasn’t given them an even shake. Here’s a look at some of the real challenges young adults have faced as first-time home buyers, according to Business Insider and our own observations!
1. Roughly 70% of college graduates have at least $29,800 in student loans outstanding when they graduate, not counting interest. It isn’t unusual for students obtaining advanced degrees to have over $75,000 in student debt. The debt payments vary from a couple-few hundred dollars a month, to enough to rival a mortgage payment. Since student loans cannot be discharged in bankruptcy, these debts remain despite any other life challenges that may arise.
2. On a national average, apartment rents have increased by about 50% during the last few decades. With slow-rising wages, renters have less ability to save money towards their own home.
3. Nationally, single-family home prices have skyrocketed in recent years, with the the average home price reaching $300,000 during the first quarter of 2019. When the housing market for the past 30+ years is considered, home prices are about 40% higher today than what the prior generation faced.
4. The supply of affordable homes has dwindled for a combination of reasons, such as the rise of investor ownership of single-family homes, and the increasing costs of land, materials and labor that keeps new home prices above entry-level thresholds.
The good news for Chicago first-time home buyers is that our home prices are less than the national average. And while we have home inventory challenges in lower price levels, our nationally-recognized public transportation system makes it easier to live in one area and commute to another, which broadens your home choices. Chicagoland home buyers also have the advantage of free, first-time home buying seminars, and an array of home buying assistance programs!
Ryan Gable Broker/CEO Starting Point Realty
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