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Report: Homeownership dreams fading away for many millennial renters

Housing
Posted at 12:04 PM, Apr 26, 2022
and last updated 2022-04-26 15:04:04-04

SAN DIEGO (KGTV) — With each passing year – and accelerated by the pandemic – an increasing amount of Millennial renters say they will never own a home.

Data from ApartmentList.com shows that 22% of Millennial renters view themselves as “always renters” in 2021, and preliminary data from 2022 shows that number increasing.

Despite stereotypes of millennials not wanting to be tied down, of those who plan to never purchase a home, 77% said affordability was the main reason — more than double the share who said they prefer the lifestyle benefits of renting such as increased flexibility and avoiding maintenance expenses, Apartment List said.

Millennial Home Buying

Across the country, the median home sales price jumped from $329,000 at the start of 2020 to $408,100 by the end of 2021. The median price for a single-family home across San Diego County was $888,000 in February 2021, according to the California Association of Realtors.

With the high cost of living in the San Diego area, more people are moving over the border to Mexico to save money.

RELATED: San Diegans moving to Mexico to save money on housing

Of those who want to buy, 66% don’t have any dedicated down payment funds set aside and just 16% have saved more than $10,000.

The report also found, that 21% said they are expecting down payment assistance from family, highlighting how wealth in one generation can facilitate wealth in the next.

Millennials continue to lag behind previous generations when it comes to homeownership, according to the report.

It found that 48.6% of millennials own homes, compared to 69.1% of Gen Xers. And finally, the nation’s highest homeownership rate belongs to baby boomers at 78.5 %, compared to the Silent Generation (ages 76 and up), for whom homeownership has dipped recently but stands at a firm 78%.

Millennial Home buying

The cheapest houses in California can be found in Lassen County in the far north with a median price of $239,000 in Feb 2021, according to the California Association of Realtors.