“High home prices top the list of reasons for abandoning the idea of homeownership, with 69% saying they can only afford to rent.”
Even though the aspiration for homeownership remains prevalent among Millennials, the expectation that it is realistic has declined.
Nearly 60 percent of Millennials surveyed by Apartment List cite student debt as a barrier to saving for a down payment. Half of Millennials who expressed interest in becoming homeowners have no money saved.
As the financial threshold for homeownership rises higher and higher – not just because housing costs have risen, but because savings and financial leverage have plummeted for such a huge portion of our population – entry-level buyers are left without access to homeownership.
The implications of shrinking homeownership are vast. Homeownership has created an economic vehicle for American families to store wealth and to pass it on – for many individuals and families, a home is their largest financial asset. For renters, it’s an asset that doesn’t exist. Beyond its wealth-building prospect, homeownership is strongly related to healthy outcomes for families and children and to stabilizing communities.
Smith NMTC is committed to restoring opportunity and stability for families and communities through policies that support and increase access to homeownership. Learn more.