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Millennials' home ownership rate decreasing

Increasing student loan debt has many millennials re-thinking buying homes

Posted: Jan. 26, 2018 9:51 AM
Updated: Jan. 31, 2018 10:24 AM

MASON CITY, Iowa - Millennials are finding it more difficult to purchase a home.

A new survey from ApartmentList.com found that indebted college graduates are saving significantly less money for a down payment compared to those without debt, while those without a college degree save even less.

The company listed a few factors for this scenario, namely increasing student loan debt, growing median home prices, and only modest income increases.

Since 1980, tuition has grown 6.5 times faster than income, the median home price grew at 60%, and the median family income has increased by only 25%.

This concerns former Mason City resident and recent university graduate Ashley Gutting, who majored in education, and says that home ownership may be out of reach.

"With the jobs I have, I don't even know if it's possible. I feel like the only thing that's possible for me at this point is a studio apartment or an apartment shared with another person. The job I'm at doesn't pay enough for me to think about it," Gutting says.

At the same time, recent graduate and home buyer Destiny Hagenow says it can be attainable and is a wise investment, as long as you buy within your means. However, she is also open for some sort of initiative to help those transitioning into the market.

"At least make it easier for students to feel like they can buy something and be a little more permanent somewhere," Hagenow says.

Responses from the survey were collected between October 2016 and December 2017, and consisted of millennial renters between the ages of 22 and 35, with current students excluded.

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