One in five millennials think they’ll never own a home MABA MassachusettsRealEstate FirstTimeHomeBuyers MaBuyerAgnet

Eighteen percent of millennials approximately one in five believe they will never become a homeowner, according to a recent survey from Redfin. Twelve percent of Gen Zers responded the same way. Roughly half of all millennial and Gen Z respondents said high housing prices are their biggest roadblock to homeownership, followed by several other affordability-related factors. Saving for a down payment was a barrier for forty six percent of millennials and thirty three percent of Gen Z respondents. Over a third of both generations also say high mortgage rates presented a huge financial roadblock. Furthermore, twenty one percent of Gen Zers and sixteen percent of millennials say they’d need to pay off their student loans before purchasing a home.

“The worsening housing affordability crisis has an outsized impact on Gen Zers and millennials because they’re much less likely to own a home than older generations,” said Redin Chief Economist Daryl Fairweather. “That means many young Americans don’t benefit from rising home prices by gaining equity. Instead, these would-be first-time homebuyers bear the burden of high prices, high down payments and high monthly mortgage payments, without profits from a previous home to offset the cost. “Many young people don’t have a choice between renting and buying,” Fairweather continued. “They’re renting because even though rent payments have increased too, it’s still more affordable than buying in much of the country and renters don’t need a down payment.”

Only twenty six percent of Gen Z adults own a home, while roughly half of millennials own a home. By comparison, seventy one percent of Gen Xers and seventy nine percent of baby boomers own their home. Among millennials and Gen Z respondents who do plan on purchasing a home in the near future, forty percent said they’ve picked up a second job in order to pay for their down payment. A smaller proportion of respondents roughly a quarter said they planned on receiving a cash gift from family to assist with a down payment or planned on using an inheritance.

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