The conventional way of life goes from getting a degree, a job and then getting married. But as more Americans postpone the wedding decision, they could be subconsciously delaying ownership of their dream home too, according to a new study.
The percentage of married 25 to 29-year-olds has dropped to 48 percent for men and 43 percent for women since 1975. The latest report by John Burns Real Estate Consulting claims that the millennials' decision to delay marriage could have a great impact on the housing market.
"The housing market is unquestionably fueled by life stage changes, particularly the change of marital status and the addition (and subtraction) of children. These changes significantly affect where consumers want to live and what kind of home and community they will choose," the report states.
It explains that singles are more likely to rent than to buy homes. The urge to buy a home increases when one gets married as there is a need for better social circles, neighborhoods and boosting income as well.
The report also notes that while the trend of live-in relationships has caught on now, the homeownership rate for the cohort is relatively lesser than that of married couples.
Also, when it comes to the decision of having kids after marriage, the potential of wanting to buy a home rises exponentially too. But all the potential is significantly lost as the decision to the tie the knot is delayed. This in turn could hurt home sales which affects the housing recovery in great measures.
There has been a significant rise in the number of single households of late, partly due to student debt. Student loans have reportedly hit a record $1.2 trillion, which is one of the major reasons why millennials are delaying marriage decisions.
"I'm sure there are people who say, 'I don't want to have a husband or a wife who is $100,000 in debt,' but I think the real problem is more indirect. There's almost not enough time to go out and start a family. It's an aspect that people forget. Planning and investing: forming relationships get in the way of that," Cody Hounanian, a 23-year-old graduate from the University of California, Los Angeles, told CNBC.
But, delaying the decision does not mean the singles don't dream of a home. A recent study, conducted by Century 21 Real estate, found that about 75 percent or three quarters of the respondents (675 singles included) said that homeownership was of extreme importance to them.
