A third of millennials are now eager to buy a home amid the impacts of COVID

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After dealing with issues like shelter-in-place and dealing with a new era of remote working, millennials are now more inclined to buy homes.

Almost 30% of them say Covid-19 pandemic prompted them to start looking for housing earlier than they had originally planned, a new Clever investigation shows. Their preparation comes nearly a year after the crisis produced travel restrictions, social distancing, lockdowns and other big adjustments.

And with the ongoing coronavirus pandemic, this generation knows the home they want. Millennials want to buy affordable, spacious and comfortable homes. And they crave these amenities, even if that means buying a home to renovate (71%) and buying a house without seeing it (around 80%). Of course, buying a sight at home can be risky for several reasons, including the possibility of accumulating significant repair costs.

For his Millennium Homebuyers Report 2021, Clever surveyed 1,000 people in January 2021 planning to buy a home next year about their hopes and anxieties. Respondents were also asked what concessions they were prepared to make in order to become homeowners. Clever is a real estate education platform for buyers, sellers and investors.

So what challenges might millennials face in their quest to own homeownership?

One of them could be housing appreciation. Clever reported that home prices have risen 8.4% in the past year, and they are expected to rise a further 10.5% this year. Plus, the increases come as millennials face growing demand and dwindling home inventories in a competitive market.

Another obstacle can be finances. Clever says 57% of millennials have more than $ 10,000 in savings, up 36% from last year. Yet two-thirds plan to invest less than 20% in their homes.

The main steps respondents take to help cover the down payment include using personal savings (67%), investment accounts like retirement or stocks (24%), and emergency funds (17%). %).

Still, historically low interest rates are a compelling factor millennials are looking for a home. Some 40% intend to take such a step, about four times more than last year. And they want bigger homes, around 2,400 square feet, a 41% increase from last year.

Simultaneously, student loan debt could hamper home ownership for millennials. Some 77% are now paying off student loans, and 31% fear debt is blocking their ability to buy a home.

Still, these millennials could get help from President Joe Biden. He asked the Department of Education to suspend payments on federal student loans until September 30, Clever reported. The forbearance period has been in place since March 2020, allowing many millennials to put money aside for a house instead of paying off their loans.

Black company reported Representative Alexandria Ocasio-Cortez continues her efforts to get Biden to write off up to $ 50,000 in student loan debt. Other progressive Democrats have taken a similar stance on the issue.

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