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Rent and home affordability are both major concerns for millennials

2 minute read

Homeowners are worried about how they will be able to afford the houses they are buying.

The real estate brokerage Redfin uncovered these worries in a survey of 1,887 homebuyers in 41 states and the District of Columbia. The survey was conducted Aug. 7 through Aug. 15.

A little over a quarter (28 percent) of homebuyers worry prices are too high. Homebuyers younger than 35 worry about affordability the most.

Millennials fret home affordability

More than 32 percent of millennial homebuyers cited affordability as a top concern. More than 10 percent said they might not have enough money for a down payment. Competition was the second top concern for millennial homebuyers. Thirteen percent marked “too much competition from other buyers;” and 12 percent said, there was a “lack of homes to choose from.”

New homebuyer may fret about affordability; high rental prices did drive them to home buying.

Nearly half (45.4 percent) of all first-time homebuyers said they were most influenced to get into the housing market because of high rent, according to Redfin.

Sick of paying high rent

A year ago, just less than 25 percent of new homeowners said they were house hunting because of high rent. Even experienced homebuyers are getting concerned about the comparable cost of rental prices. Among all homebuyers surveyed by Redfin, 22 percent said the cost of rent motivated them to buy, up from almost 13 percent a year ago.

But not every homebuyer is sweating affordability. Just over 10 percent of homebuyers surveyed by Redfin had “no major concerns about buying.” And more than 26 percent of homebuyers said they were most influenced to purchase a home because of a major life event such as a birth of a child or a marriage.

Millennial homebuyers, once they get past affordability concerns, are looking for idyllic places to live. After the quality, design and floor plan of a home, millennials are most concerned about school quality, easy commutes, a yard or green space and walkability.

New and would-be homebuyers concerned with managing debt burdens can turn to for resources and advice including free calculators and budgeting tools for mapping your way out of debt and saving up enough money for a down payment for a home.

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About the Author

Lucy Lazarony

Lucy Lazarony

Lazarony is a freelance writer based in South Florida.

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