Chicago area home prices aren’t as steep as other major cities. But for some first-time homebuyers, they’re still too expensive. According to a recent study by ApartmentList, published in the Chicago Tribune, about 1 in 5 millennial renters are quitting the idea of home ownership.
On the flipside, that means 4 out of 5 millennial renters are still planning to buy a home in the future. Yet the fact that so many people feel priced out of the market is a troubling trend. 18% percent of renters between the ages of 24 and 39 said that financial issues would keep them renters for life.
Millennials are saddled with higher levels of student debt than prior generations, and this continues to be a major obstacle to home buying. When the pandemic added uncertainties to the economy – while driving up home prices – a number of Millennials put their home buying plans on hold.
For some renters, apartment living is a matter of preference. Not every millennial feels ready to put down roots, or commit to the upkeep and expenses of home ownership. Renting is fine when it suits your needs. However, whenever the costs of renting are compared to the costs of owning a home, home ownership wins out in the long run.
Consider the fact that average rents for a 2-bedroom apartment in Chicago range from $2,000 to $3,000+ a month, depending on the location and the amenities. That’s a lot of money to give up with nothing to show for it later.
First-time home buyers in Chicago do face challenges in today’s market. Limited inventory is an ongoing issue, and bidding wars have become the norm in certain price ranges. Still, you can modify your home buying goals without giving up on them! There’s nothing wrong with paying down debt and building up savings. You can learn about the Chicago and Suburban real estate market while getting your ducks in a row.
Always feel welcome to talk to us about your home buying goals. We can educate you about the market and about the home buying process, and help you make a plan for the future!
StartingPoint Realty – helping home buyers since 2004!
StartingPoint Realty proudly serves first-time home buyers, repeat home buyers and first-time sellers throughout the entire Chicago area. Get an introduction to home buying by attending our free home buying webinar! There’s no sales pressure and no obligation. Always feel welcome to contact us for help with your Chicago home buying questions!
Ryan Gable Broker/CEO Starting Point Realty
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