By loanDepot Staff Writers
It’s no secret that millennials have been slow to enter the housing market. Now the largest living generation and biggest age group in the U.S. workforce, millennials have come of age in unique economic times.
Between struggling to find good paying jobs and juggling mounting student loan debt, many millennials believe the dream of homeownership is out of their reach, according to the National Association of Realtors. But the desire to own a home is still strong.
At loanDepot’s Retail Lending division, we have the technology and the products to help millennials get into a home. But first, it’s important to understand how millennials operate and what motivates them.
What’s keeping millennials at home?
Millennials, those born roughly between 1980 and 2000, have been slower to move out of their parents’ homes than previous generations. Living under mom and dad’s roof is the most popular living arrangement among adults ages 18 to 34. This is mostly due to economic circumstances, according to a study by the Federal Reserve.
Pew Research shows that this is the first time since the U.S. began keeping Census data that more young adults are living with mom and dad than with a spouse. But they still want to buy, according to NAR.
“Despite entering the workforce during or immediately after the worst of the financial and housing crisis, the desire to become a homeowner appears to be a personal goal for a convincing majority of young renters,” says Lawrence Yun, NAR’s chief economist. “Furthermore, there appears to be sizeable, pent-up demand for buying that currently remains untapped because of a variety of economic and personal reasons impacting many households.”
Tapping the millennial homebuying market
Educating millennials on the options available to them when it comes to buying a home is the first step to helping them achieve their dreams. Owning a home has many benefits. From tax breaks to building equity, homeownership has proved to be an excellent investment, experts say.
“Buying a home is one of the smartest financial decisions you can make as early as your 20s,” says Riccardo Ravasini, managing director of Rava Realty, who handles properties in New York and Florida, “because it is inflation-protected and a physical asset that doesn’t disappear like stocks can do.”
Since saving money has been a struggle for millennials, low down-payment options, such as a 3.5 percent down FHA loan or $0 down VA loan, are excellent options to help them break into the housing market.
Speak with a licensed loan officer at loanDepot’s Retail Lending division today for more information on the programs we have available for millennials. Click here to find a licensed loan officer in your area. By educating yourself on needs of millennials, you’ll be able to serve them better in their search for a home.