Owning a home seems impossible for many millennials today, who have already incurred a substantial amount of debt due to student loans and other costs. While baby boomers and older generations may think those from about 20 to 36 years of age have it made today, this isn’t really the case – at least in North Texas.
Many millennials are interested in buying a home in North Texas that offers an easy commute for both spouses, in couples who are married or who live together. The problem is, because the North Texas market is hot, homes often sell almost as quickly as they’re listed. Home prices and the other costs of homeownership continue to rise, while many millennials are still paying off student loans well into their 30’s. This is another problem, as millennials face issues making it difficult to establish good credit.
Most millennials rent their homes, and considering stagnant wages, along with the increasing cost of attending college, these young people find themselves in a very difficult situation when it comes to purchasing a home.
Saving for a down payment is next to impossible for many millennials, who rent and continue to pay off student loans. According to data from the National Association of Realtors, in 1981, first-time homebuyers’ average ages were between 21 and 35. At that time, the average cost of a home in the U.S. was about $70,000. Today, the average age of the first-time homebuyer is 44, and the average cost of a home has tripled to $210,000. Perhaps millennials don’t have it as easy as some of the older generations believe they do.
Student loans can have a positive impact on credit score, when paid on time; however, for many millennials who are late on payments or who refinance, they can be a tremendous blow to credit. It seems ironic that getting a good education, so that they can enjoy a higher paying career, often cripples this young age group when it comes to homeownership.
Team Nelson is in your corner, dedicated to helping you find a beautiful home in North Texas that is within your budget. For guidance and answers to your questions, trust our Dallas real estate professionals to look out for your best interests.