Hot Housing Market and Cold Feet Millennials

Most millennials grew up in a home where someone owned the property or at least paying a mortgage loan. So, you might ask why millennials would be a generation  skeptical about purchasing a home. Let’s consider a few facts:

Student Loans

For most millennials that attended college, student loan debt became a serious reality after graduation day. As you walk away with a four-year degree in search of your full time job, you’re already in debt.

While in the process of becoming approved for mortgage loan, your debt is instantly taken into accountability. Mortgage companies do this so that they know their money will be reimbursed as well. If someone owes more than they’re making, it isn’t likely that they will see this to be approved.

Considering the lender’s standards, their debt-to-income ratio is a leading contributor to their inability to purchase a home. This has become increasingly more tough for potential buyers who have debt from the start, than that of previous generations.

The Unknown

Most people find that taking out a mortgage loan that they will have to repay is even more of a risk. They begin to question their job security, whether they’re even content with their current job, and where they see themselves in 10, 20, or 30 years.

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Uncertainly plays a major factor in the “big picture”. People tend to rely on the things they are familiar with.


We’re aware that the housing market, when in demand, becomes competitive. The lack of homes due to scenarios such as inflation, can make it even more difficult for millennials to land a home. When older buyers are purchasing homes with cash, it can quickly leave a millennial out of luck and without an edge.

Due to the fierce competition, most millennials are left with few options. One of the major solutions that millennials are taking to is renting. Month after month, millennials are throwing their money to rental companies without a single penny invested into their own financial gain. Although rentals come into the form or apartments, duplexes, or even single family homes, they’re not truly benefitting the same way they would had they purchased a home.

Late Start

For many reasons, millennials are starting families later than previous generations. Considering their student loan debt, attempting to land their dream job, and the fear of committing to additional risks; they don’t see starting a family in their near future.

Due to the delay, they become immersed in their careers and focus on themselves versus the time it takes to invest in a family and home. By detaching themselves from additional responsibilities they’re able to focus on themselves and save money.

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