Homeownership has always been a defining characteristic of the American Dream. But 75-percent of millennials between the ages of 23 and 38 can’t afford to purchase a home! That’s according to research involving 2,000 millennials nationwide.
The millennials surveyed said they can’t afford to purchase a home because they aren’t financially prepared.
“Some of the big things that popped up were student loan debts, car loan debts, and then just overall debt in general as one of the biggest burdens when it comes to purchasing a home for millennials,” said Collin Czarnecki, Content Strategist with Digital Third Coast.
And the median home price in Nashville and what millennials say they can afford are very different numbers.
Czarnecki told News 2, “As we asked millennials what they could afford on average was $218,000.”
That might be a problem because, according to February numbers form the Greater Nashville Realtors, the median price for a residential single-family home in Nashville is $294,486.
It’s also smart to take your time when making such a big decision, which isn’t always easy when homes are flying off the market in Nashville.
Czarnecki said, “A house might be on the market for two days or even a day. Having that backup plan and to not put all your eggs in one basket in terms of a “dream home” that you’ve had your eyes on, so it’s definitely important to keep all your options open and not bank on one home.”
It’s important to start saving as early as possible.
“When it comes to purchasing a home, definitely save as early and as often as you can. Setting aside a monthly budget, not only for your overall expenses. Maybe you might be renting right now or potentially living with a family member to save up for a home, but definitely do your research when it comes to what you can afford for a down payment, and what you can afford for a mortgage payment as well,” said Czarnecki.
And millennials living in Nashville may even consider making that first home purchase outside the city.
Czarnecki said, “You might have to maybe uproot yourself to find a home that you can afford and obviously a lot goes into that too, potentially looking for a new job, or maybe asking your current employer if you can work remotely in order to buy a home that you can afford.”
Overall, it’s important to get your finances together and don’t rush into anything.
Some regrets millennials have about making a hasty purchasing decision are maintenance issues, the size of the house, and struggling to meet mortgage payments they thought they would be able to afford.
News 2 is reporting on Nashville’s historic growth and the growing pains that come with it. Click here for more Nashville 2019 reports.