Millennials won’t being looking to buy a home any time soon a new report from John Burns, a real estate consultant and author, says, according to an article by John Schoen for CNBC.
While homeownership decreased across every age group since the housing crisis, the Millennials have the rest of the market beat by far at a 21.2% drop in homeownership among those under 35, according to the article.
The next closest is 35 to 44 year-olds at a decrease of 16.7%, followed by 45 to 54 year-olds with a 10.7% decrease, 55 to 64 year-olds with an 8.5% decrease and over 65 year-olds with a 3.2% decrease.
The article predicts that this trend won’t end anytime soon as homeownership continues to fall until 2025.
But according to Catherine Rampell, The Washington Post opinion columnist, that’s not a problem.
“From a financial standpoint, I think that the fact that young people are not putting their money in these assets is not so bad,” Rampell said.
As it turns out, about 50% of Millennials, and about two-thirds of Millennial non-homeowners who have student debt, are uncomfortable taking on a mortgage, according to a report this summer by the National Association of Realtors. What’s more, this group was less likely to believe they could even qualify for a mortgage.
Rampell explains in this video why not buying a home could be the best decision for Millennials: