How Long Do Millennials Have to Wait to Buy A Home?
It is common belief that millennials push back plans of buying a home because they cannot afford it. They grapple with student loans, credit debts, rent increases, and other financial challenges. These weaken their financial ability, making them a risk in the eyes of lenders.
With all these factors in play, how far back can millennials postpone achieving their dream of owning a home?
A Homes.com study interviewed 1000 millennials and found 70 percent believe they do not qualify for a loan. Many do not meet the minimum lending standards to qualify for a mortgage. Over half feel their shaky financial affair is the biggest obstacle to their dream of owning a home. Almost half also believe their situation will not improve anytime soon in the next few years. It is safe to say that millennials are pessimistic in the views of home ownership.
A recent Pew study showed that more millennial-led households live in poverty in the US. Out of the 17 million households in the US that live in poverty, 5.3 million are millennial-led households.
There are millennials who are successful in buying a home, but many do so with help from their parents. Some parents refinance their own house to help their millennial children buy a home.
Those born to an affluent family are luckier. A Zillow study showed 43 percent of millennials supported by wealthy parents in college also became homeowners. Yet these young homeowners represent only 3 percent of the total millennial population. Some may be lucky enough to have wealthy parents or have other resources lying around to finance a new home. But a big chunk of the millennial population is still locked out of the housing market. What makes it worse is that they earn less compared to other generations during their time.
Which brings us back to the important question—do you have to wait a decade or two to afford to buy a property? Turns out, you don’t have to.
You can find out how soon you can buy a home by using the Poplar Street Home Savings Calculator. You only need details of your annual income, current rent amount, and savings, if any, to use it. Input this info and calculate the home value you can qualify for. It will also show you how soon you will be able to buy a home.
This calculator is a key tool of Poplar Street, the new home ownership product of Onerent. Poplar Street allows renters to save 20 percent of their current rent payment as a credit. This credit goes to their Poplar Home Savings which they can use in the future to buy a home. It’s an easy and simple way for renters to transition from renting to owning a home soon.
Use the Poplar Street Home Savings Calculator and see how it makes home ownership faster for you. So you don’t have to wait till you’re middle-aged to finally afford a home.