For young adults in our country known as “millennials” — those born in the early 1980’s and who graduated from college in the early 2000’s — we have some news on what they are finding when they go to purchase their first home — and it is not good.
Many millennials appear to be missing out on one of life’s great milestones of young adulthood. They are drowning in debt — and that is preventing them from buying their first home.
Millennials are well educated, driven and usually have high paying jobs. But when it comes to buying a home — these factors aren’t saving them.
CNN-money reports their debt, mostly from hefty student loans, is holding them back.
And according to a Pew study from this year — there is a decline in the percentage of 18 to 32 year olds being able to afford their first home.
The downward trend can be seen in just the last six years of data.
In 2007, 36.1-percent of 18-32 years olds were able to afford their first home. In 2013, just 34.3-percent were.
The New York Federal Reserve reports, that for the first time this year, the rate of homeowners is greater among non-graduates than college graduates.
So, instead of owning their own dream home, these well-educated millennials are now moving back home with mom and dad.
A Pew study also found that 36-percent of millennials are living back at home to save money because of their debt burden.
An expert tells CNN-Money that if millennials continue to live at home, it will just feed the problem, because those who move back in with their parents, aren’t building their credit histories. And that means, it will only make it more difficult in the end to get their own mortgage.