A large percentage of millennials want to buy homes. But they’re allowing rising home prices—and misconceptions about the market—to keep them stuck in the renting cycle.
According to CoreLogic’s Young Millennial Housing Survey (which was featured in their most recent Home Price Index report), 40% of millennials are extremely or very interested in purchasing a home now (with 64% consistently monitoring prices in their local market). But nearly three-quarters of millennials surveyed (73%) cited affordability as a barrier to homeownership—significantly higher than any other age group.
While affordability may be a challenge, the truth is that there are plenty of millennials out there who could purchase a home, but their misconceptions about what it costs to do that are holding them back. According to a recent survey from lender Laurel Road, 58% of Americans believe you need a 20% down payment to purchase a home—but with today’s flexible lending options, it’s possible to buy a home with very little down.
If you’re a millennial who wants to buy a home—but don’t think you can afford it—start exploring your options. You might be able to purchase a home with less than you’d imagined and be able to transition to homeownership sooner than you thought possible.