A new study by the Urban Institute identified several factors that are contributing to millennials’ low rate of homeownership, which is roughly 8% lower than the two previous generations at the same age.
The factors affecting this rate include: delayed marriage and child bearing; increased education debt and rents; the desire to live in more expensive, urban centers; and lower levels of parental wealth and homeownership.
The study’s authors discussed four steps that could combat these trends:
*Bolstering the financial understanding of millennials about homeownership.
*Simplifying and streamlining the mortgage process.
*Taking a more holistic view of millennials’ creditworthiness by including criteria such as rental, telecom, and utility payment history.
*Easing land-use restrictions to allow for more construction, particularly where the housing supply is tight.
Isabella recently discussed D.C. millennials’ housing goals in an article for Washington Business Journal, which you can read here.
Are you a millennial interested in buying your first home? The Carolyn Homes Team specializes in first-time homebuyers! Call Carolyn today at (240) 353-7601 to discuss all of your real estate needs.