The transition from renting to buying is big, especially for Millennials. Despite 75% of Millennials wanting to buy rather than rent, 3 in 4 can’t afford a down payment. That’s a 38% decrease from 2021 when 83% of millennials reported actively saving for a home purchase. But more than half (51%) are actively saving, despite financial hardships and a lack of basic home-buying knowledge.
- 77% say rent is too high to save for a home
- 74% have debt inhibiting their savings: 54% credit card, 40% student loans, 26% auto loans, 16% medical debt
- 48% can’t afford something nice enough to want to buy
Even if they had the money right now, 58% don’t feel prepared to buy a home. Many Millennials can’t calculate or are unfamiliar with basic mortgage math. Of those surveyed, 2 in 5 overestimated their buying potential, and many dramatically underestimated the financial toll interest will have on their home’s cost over 30 years.
Check out the full study here, which includes a further breakdown of Millennials’ homeownership preparedness and savviness.
