Millennials play key role in homeownership

by: Christina Pontisso

Below are some factors that might explain why millenials are reluctant or even prohibited from becoming first time home buyers.

Gino Blefari, CEO of HSF Affiliates LLC, the operator of Berkshire Hathaway HomeServices, Prudential Real Estate and Real Living Estate franchise  states that “Millennials will impact the homeownership landscape,” Blefari said. “There’s no doubt first-time buyers were impacted by the tighter lending requirements in recent years, and as home prices continue to rebound, some of those first-time buyers who don’t have the equity of another home to help with a down payment were squeezed out. However, this generation still very much believes in homeownership.” 

One major contributing factor — STUDENT DEBT! “The average student who graduated from college in 2013 with student loans walked away with $28,400 in debt, according to the Institute for College Access & Success’ Project on Student Deb.” “A 2012 study by Young Invincibles found that then 30-year-olds who graduated in 2004, on average, were likely ineligible for a mortgage due to poor debt-to-income ratios.”

Another factor holding millenials back from making their first ‘adult’ purchase — the poor job market. Despite the economy’s some what recovery,  “unemployment rates are still low for recent college graduates, hovering around 11 percent for 20- to 24-year-olds in November.”

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