Many millennials are choosing to complete their post-education before settling down to raise a family and purchasing a home. The high cost of education means that a lot of these millennials will be carrying a large student debt once they have completed their studies.
An interesting study was recently conducted in the United States showing that approximately 414,000 housing sales won't take place this year due to the high student debt levels. Many students are paying back at least $250 per month for their loans and can't possibly even take a look at taking out another loan for a home right now.
According to the study that was conducted by a consulting firm in California called John Burns Consulting, this loss of home sales represents about 8% of all U.S. housing sales and could cost the housing industry $83 billion per year. As well, those that are able to move forward with a housing purchase are planning to spend $44,000 less as a result of their current student loan burdens.
There's a new trend underway. People that haven't attended school are more inclined to look at the possibility of home ownership. Millennials are looking at the drawbacks of taking on more debt and having to give up material objects and life experiences.
There are plenty of reasons, however, why millennials should explore home ownership while they are still young. Buying a home at a younger age gives you the chance to pay down your home loan and start building up equity faster. You can also rent out rooms in the home to help with the monthly mortgage payments.
Millennials may have a harder time making their way into the housing market for the first time but once it's accomplished it's easier to move forward in the future. A condo works as a perfect stepping stone towards a larger home purchase and there are still plenty of affordable condominium units available for sale in and around Calgary.