In an article published by Newser, the reasons why young Americans are waiting longer than ever to buy their first homes are being short of cash and being unsettled in their careers. In the said article it was mentioned that according to a new analysis by the real estate data firm Zillow, the typical first-timer spends about six years paying rent before finally buying a home. In the early 1970s they did not have to wait that long as it had been reported that they only rent up to 2.6 years. Furthermore, the source says that the average age of the first time buyer is said to be 33-this was based in the upper range of the millennial generation, which approximately spans ages 18 to 34. With the previous generation, the median first-timer was about three years younger, 30. The longer wait is attributable to the trend that cuts to the heart of the financial challenges facing millennials and that is the fact that renters are struggling to save for down payments.
According to Zillow, First-time homebuyers today are typically older, spend more time in rental housing, are less likely to be married and are buying more expensive homes than they were in previous decade.
These shifts can help explain why the share of the U.S. population who own homes has slid to 63.4 percent, according to the Census Bureau. The source also mentions that nowadays the young adults who do sign the deed, the purchase price is now substantially more, relative to their income, than it was decades ago. "Millennials are still very interested in buying a house, but they're delaying that decision," the source quotes what the chief economist at Zillow said. "Once they start having kids, they begin looking for homes. We're also finding that-given how much rental rates are currently rising-a lot of folks are having a hard time saving for a down payment and qualifying for a mortgage."