Millennials Abandon Homeownership Dreams Amid Affordability Crisis
Home prices in the area remain near record highs, with affordability and availability issues causing many aspiring homeowners, particularly Millennials, to give up on their dreams of purchasing a home. Only 7% of aspiring homeowners are currently actively shopping for a home.
The cost of homes is the most pressing concern for aspiring homeowners across generations, genders, and income brackets, with 28% citing it as the most important factor in their decision to buy. This is compounded by mortgage rates that, while retreating, remain well above their pandemic lows.
U.S. home affordability is at its worst level in decades, with one in six aspiring homebuyers having given up on their plans in the past five years due to these issues. The younger generations, often referred to as Millennials or Gen Y, are the most affected, with 16% of them abandoning their homeownership aspirations. This generation also believes they have fewer financial opportunities compared to older generations.
Despite the challenges, a significant number of aspiring homeowners still consider homeownership a priority. However, with prices having risen significantly since the Covid pandemic and incomes not necessarily keeping pace, the road to homeownership remains a daunting one for many.
