Millenials or people belonging to the 18 to 34 age bracket are finding it hard to buy their own homes.
The millennial generation of citizens is entering a phase when they want to own real estate but it is proving to be a Herculean task. In a report by Boston Globe, one school teacher named Richard Caughey has finally found his first home in a waterfront condominium in Chelsea. It will cost him $230,000 but there's a caveat; it measures less than 300 square feet which is small than average room sizes in hotels. Caughey who is 28 and is part of the millennial group has no choice since there are very few options he can find for his budget. "It's hard to find an entry-level home," he said.
In the same post by Boston Globe, a tough question hangs over millenials -- should they give up hope of home and property ownership? It is mentioned that it will take time, careful planning, and some compromise but the straight answer is no, they should not. Rich Hornblower, a realtor from Coldwell Banker Residential Mortgage in Back Bay, said "They may not exactly find what they want, where they want."
It was also mentioned in the same report that homeownership rates have declined in a steady rate based on findings made by the US Census. From 39 percent in 2009, it is only 34.8 percent for this year. Thomas Callahan, executive director of the Massachusetts Affordable Housing Alliance said there are close to 40 percent of participants in homeownership class that belong to millenials and according to him there are indications that these age group has strong desire for homeownership.
Meanwhile, according to Realtor.org, millenials are having a tough time entering into homeownership due to high unemployment rate, student loan debts, and limited credit.