Why aren’t millennials buying homes?
Written By: ChrisAnn Wright, Esq.
Many have commented on the fact that millennials don’t seem to be buying homes, at least not the traditional homes in the suburbs. One of the biggest reasons is these homes are not affordable. Once upon a time, the dream was to get married, buy a house and fill it with children. Today, those starting out in the work force can’t afford to buy a home in suburbs. One major reason is the baby boomers.
Baby boomers have traditionally been against affordable housing. The phrase “not in my neighborhood” is common among baby boomers. The lack of affordable housing in the suburbs has caused the millennials to stay in the cities near transportation and apartments. In addition, many baby boomers want a favorable return on their investment. Baby boomers have priced their homes so that the younger generation can’t afford to buy them. Many millennials have student loans to pay and can’t afford the type of mortgage required to buy large suburban homes. On the flip side, the price of long term care has skyrocketed. So baby boomers need to realize a certain amount from the sale of their homes in order to move into assisted living or a senior community.
Finally, in many suburbs in New Jersey, apartments are being built along the railways. Towns like Westfield, Fanwood, Cranford and Somerville have all constructed mixed use residences. In other words a building built near a train station may have stores or businesses on the ground level and apartments above. Millennials who don’t own a car can easily shop the businesses in the center of town and take the train to work. There’s no need to own a home or a car. Many of these apartments are brand new and don’t require maintenance. These new projects help the town prosper while providing millennials with affordable housing. This combination causes baby boomer homes to remain on the market.
When buying or selling a home, consider using Lyons & Associates, PC as your real estate attorneys. Lyons & Associates prides itself on giving sound advice in many areas, including real estate. We place a premium on personalized service and attention. For a private consultation, contact us by e-mail or call our office at 908-575-9777.