Just a few years ago, millennials caught a lot of flack for being boomerangs: they left home for college and immediately swung back as soon as they turned their tassels, settling into childhood bedrooms and uninhabited basements because they couldn’t afford to do much else. They didn’t have much of a choice in the matter, either, as a great recession set in and put a huge damper on the job and real estate markets. For many millennials, though, the tide is starting to turn.
Between the years of 2007 and 2012, the United States Census Bureau’s American Community Survey showed an annual decline in young homeowners between the ages of 25 and 34. Each year, this decline tallied in at more than 250,000 young homeowners lost. Since 2012, though, the decline has tapered off to less than 100,000 fewer homeowners per year. Even more exciting is the fact that, between the years of 2013 and 2014, the decline was deemed statistically insignificant. Simply put, this means that the decline in young homeowners is finally reaching a plateau. While numbers are still lower than in the past, the fact that the decline is shrinking is promising for the next generation of homeowners. To top it off, mortgage interest rates in Chapel Hill and other areas are at attractive levels.
If you’re a millennial, then, you might be wondering about home ownership for you and whether or not it’s the right choice for your future. The truth is that buying a home is typically a great investment, especially if you’re making it at a young age. For one thing, buying a home helps you build equity, as most properties increase in value each year. The percentage that it increases may seem small on its face; however, annual build-up will only make the value of all of your personal assets greater. Most millennials are also familiar with the up-and-down of the housing market and rent prices. By buying a home, you’re locking in your monthly payments for life, which can be a big point of relief if your starter home is something well within your budget. If that’s not enough incentive, consider the freedom you have to make your home your own. No more living in the shadow of mom and dad’s decorative stylings; instead, you can make your new home your own. Before deciding on a new home anywhere in North Carolina millennials are urged to look at all financing options. Finding the right NC FHA mortgage broker could be important as younger home buyers can benefit from the lower down payments and more lenient credit score requirements.
So, to answer the question, “Should millennials care about buying or financing a home?” The answer is yes. Even if now isn’t the time to buy, simply being aware of the good things a home can do is enough to keep your eyes on the real-estate prize. And, if you are ready, there’s no better time than the present to get your hands on keys that are all yours. Goodbye, mom and dad’s house.