We know that Baby Boomers are winning the generational real estate war when it comes to securing home purchases, but a new study from Legal & General finds that the dream for Millennials is less and less of a reality.
According to the study, more than half of millennials aren’t saving for a down payment, with underpaying jobs or joblessness as primary obstacle. It is estimated that only 43 percent of millennials are homeowners—the lowest home ownership rate of any generation and well below the overall average of 65 percent.
Legal & General found that of those millennials surveyed who are not yet homeowners, 36 percent find home ownership hard to afford where they currently live. An additional 20 percent find home ownership in their area extremely hard to afford.
In terms of cost of living, since 2012, incomes among millennials have risen 24 percent, while house prices have jumped some 86 percent. With millennials making, on average, $47,034 per year as of March 2020, it is almost impossible for millennials to make enough income to save for a down payment, qualify for loans and also be competitive in today’s market.
For more on this study, click here.