Since the 2008 housing crisis, many millennials have come-of-age, graduated from college, married and even started families. The next logical step is buying a home, however, many millennials have been holding back because of the traditional steep home prices and fluctuating market.
Well, the good news is that many of the traditional obstacles have diminished and now is a better time than ever to buy a home. Here are the top 5 reasons why millennials should buy a home right now:
- Buying is cheaper than renting
According to real estate website Trulia, “buying a home is 23% cheaper than renting nationwide for millennials.” This is great news whether you plan on staying in your area long term or moving to a new area. In fact, in all but two cities in the country, it is significantly cheaper to buy than rent.
- Homebuying has become more affordable
Wave goodbye to the traditional 20% down payment and high interest rates. Today, more lenders are amenable to about half to even a quarter of that amount. And, what’s more, interest rates are the lowest they’ve been in three years, which means that now it’s even more affordable to reduce your down payment.
- Get out of your parents’ house
The number of adults aged 18 to 34, excluding full-time college students, who live independently has dropped 4% since before the housing crisis according to a study by the Pew Research Center. Many millennials are moving back home after college to save money. Without the expense of rent, food, utilities, internet service…the list goes on…employed millennials should have an easier time coming up with a 5% down payment to finally allow them to get a home of their own. And, hey, your mom can still pop over with a casserole once in awhile.
- Information at your fingertips
With the explosion of the internet, millennials now have more information than ever to make a solid, informed decision when purchasing a home. Sites like Trulia, Zillow, and others make browsing for homes that much easier. And search engines are your best friends when it comes to figuring out all the financial ins and outs of homebuying.
- Cool is not just for cities anymore
With more and more young people moving out of the cities, small towns and suburbs are becoming the new hot spots. Added bonus: the cost of living in these areas is significantly cheaper than nearby cities. So, now is the time to become a trailblazer and hit the up-and-coming neighborhoods around you before they become so popular you get priced out.