So, what is really holding Millennials back.


Many factors have been discussed why the younger generation is holding out. including, high home prices, the shock effect of the last housing crisis, high debt burden of student loans as well as delays in family formation.

According to a recent study by the Urban Institute, in 2015 Millennials homeownership rate was 37%, when compared to Gen Xers an Baby Boomers (at age 25 to 34) they were about 8% higher.
Here are five factors that Urban Institute found why Millennials have stayed out of the home-buying market longer.
  • ·          Delayed family formation
  • ·          Greater racial diversity
  • ·          Student debt
  • ·          Higher rents
  • ·          Delayed child bearing

   Although not in the study, an unintended consequence occurs due to Millennials tendencies to stay living with parents longer, forcing parents to delay downsizing therefor adding to the shortage of for sale homes, which in turn have and upward trend on home prices. 

Millennials also tend to prefer trendy pricier neighborhoods and end up renting rather than buying.
In my opinion.
In the not too far future the Baby Boomers will have a profound effect in the Real Estate market when they finally reach a must sell point and the magnitude of property held by this generation can flood the market with quantities not seen in the recent past.


Aside from the study in my practice I have experienced that Millenniums shy away from the typical “starter home”, maybe due to the influence of the TV shows featuring listings and upgrades that are extremely appealing but seldom affordable for a first-time buyer. They seem to aim higher than their budget, never finding the “right” property.







Guillermo "Bill" Sanjurjo Realtor®
12955 SW 42 St Suite 2, Miami, FL 33175
Cell: 786-232-1400
Visit my Website
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