From qualifying for a loan to navigating markets with tight inventory, it’s no secret that millennials have a lot of roadblocks standing between them and home ownership. In their new 2020 Millennial Home Buyer Report, Clever Real Estate, an industry data firm, identified the biggest struggles that this generation faces when it comes to achieving one of life’s biggest financial milestones.
According to their research, however, there was one obstacle that stood out above the rest. In fact, though 70% of those surveyed said that they considered home ownership to be part of the American Dream, that number is down from 84% in 2019. The decline can, at least in part, be attributed to the trouble that millennials are having in saving for a down payment
Nearly half (48%) of all the participants surveyed admitted that an inability to save for a down payment is the biggest barrier they face on their road to home ownership. In line with that, over 25% of those would-be-home-buyers said that they currently have less than $1,000 in savings.
On the topic, Clever Real Estate’s research associate, Francesca Ortegren, who headed the study, had this to say:
“Many millennials in our study indicated that they find it difficult to save for a down payment…rent is high, wages are relatively low, and they’re dealing with student loan debt. Saying ‘just save’ to a millennial is easier said than done.”
That said, she admitted that while saving may be harder for this generation, it’s not impossible. In her mind, it comes down to figuring out how much you need to save, setting a monthly savings goal, and using banking tools to automate your deposits.
Despite it all, millennials are also working hard to overcome the barriers before them. They are 30% more likely to take on an extra source of income for a down payment and 1.5 times more likely to consider alternatives paths to home ownership like leasing a rent-to-own property.
With that in mind, there’s no stopping them. Sooner or later, millennials are going to achieve the financial milestones that they want so badly.