A recent report focused on Millennial homeownership finds that 95% of Millennials say they face barriers to buying a home. And it's true, Millennial homeownership rates lag behind those of other generations, with the top three obstacles being elevated interest rates (50%), high home prices (46%), and saving for a down payment (42%). But despite these hurdles, the report from real estate information service Real Estate Witch found that Millennials still believe in the American Dream of owning a home and are willing to go to considerable lengths to achieve it.
The report found that 65% of this cohort would accept an interest rate of 10% or more, and 23% would accept a rate of 15% or more. Respondents also said they are willing to pay above asking price, would tolerate locations that are not ideal, and about 85% would purchase a home without touring it in person.
But, along with rising costs, significant debt obligations hinder Millennials’ ability to save for a down payment.
About 85% of millennials have some form of non-mortgage debt, with 22% owing more than $50,000 and 57% owing more than $10,000. That means the percentage of millennials (57%) who have $10,000 in debt is more than double the percentage (25%) who have $10,000 in savings.
Millennials are already one of the most indebted generations, but that hasn’t stopped them from piling on more. Millennials are 16% more likely than a year ago to owe more than $50,000 and 24% more likely to owe more than $10,000.
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