The statistics make it clear that younger Americans aren’t buying homes with the same frequency as their older counterparts at the same ages. This can be seen in how just 35 percent of the households headed up by someone under the age of 35 owned a home in 2017, which is much lower than the 41 percent in 1982. As for why this is happening, well, it seems to be a matter of financial limitations rather than a change in personal preferences.
Why Are Younger Americans Buying Fewer Homes?
In short, younger Americans are not buying homes with the same frequency as their older counterparts at the same ages because their financial footing isn’t as sound. For instance, a full 75 percent of college graduates belonging to the millennial generation are carrying student debt for either themselves or their spouses. As such, it is no wonder that they are waiting to buy their homes for when they are on sounder financial footing. Something that seems to be supported by the fact that college graduates who come out of school with student debt are not as likely as their unburdened counterparts to own a home by the age of 33.
What Can Be Done About This?
Unfortunately, there is no simple and straightforward solution to this particular problem. At the end of the day, it is a matter of not having enough money. Theoretically, solving this can be summed up as a matter of bringing in more revenue and reducing expenses, but in practice, that kind of advice is much easier said than implemented. Still, it might be worthwhile for interested individuals to consider some of the most common options for people who are seeking to pay off their student debt so that they can get started on saving up for home ownership. After all, just because most of the advice is common-place, it doesn’t necessarily mean that it is known by all of the interested individuals.
For starters, if it is an option, interested individuals should think about moving in with their parents. Yes, there is still some stigma attached to this particular option. However, it can nonetheless help interested individuals cut by their expenses by a significant sum, though the exact savings will see some variation depending on their exact arrangement with their parents. Even if interested individuals are expected to contribute to various expenses, chances are good that they can still expect hundreds of dollars that can be put to better uses elsewhere.
Moving on, it might be possible for interested individuals to refinance some of their outstanding balances. Generally speaking, this is a good option for people whose finances are in good shape. However, if their finances are not, they still have the option of brushing up their credit scores for a few months before looking into the refinancing option once more. As for why interested individuals would want to go to so much trouble, refinancing with good interest rates can provide them with much better interest rates as well as other improvements in other respects, meaning that they could wind up saving a significant sum that would have otherwise been paid out as interest in the long run.
Finally, there is the option for interested individuals to seek to make more money from their job. Theoretically, this could mean getting a raise at work, but in practice, the chances of that happening for someone who is still in a relatively junior position aren’t particularly good. As a result, for a lot of people, this means seeking out a second job. Unsurprisingly, this isn’t exactly the most popular option that can be found out there. After all, if someone is already doing a 9 to 5 job, chances are good that they aren’t going to be very enthusiastic about working more hours than that because of a lack of energy if nothing else. Still, this is nonetheless an option for people who absolutely want to pay down their student debt as soon as possible, meaning that they shouldn’t ignore it if they are looking into various ways by which to reach their intended goal sooner rather than later. With that said, if people’s expenses are already totally covered by their first job, a second job really can provide them with a significant boost to their debt-paying speed.