The housing market is in a Not So HOT State and millennials are getting screwed. In this episode, I want to talk about the challenges that are currently faced by millennials who are trying to buy their first home. The housing market has been steadily rising for years now but what does that mean for millennials? It means that not only are you struggling with student debt or trying to save up money before making any kind of purchase, but also battling against inflated prices on houses.

Millennials are being priced out of the housing market due to rising housing prices. The problem is that this generation has to save for a longer period of time in order to afford a down payment and qualify for a mortgage. This isn’t just an issue in larger cities like New York and San Francisco, but also in smaller metropolitan areas like Des Moines and Tucson. The only way millennials will be able to buy homes is if they can get creative with their finances or wait until the economy takes another dip.

Why Millennials Can’t Afford Homes

The housing market is HOT and millennials are getting screwed. Millennials are being priced out of the housing market due to rising housing prices. The median price for a home in America is $386,888. That number has risen dramatically over the years. In 1970 it was just $17,000.

The average millennial would need to save 20% down on their home purchase. Since most millennials are not making that much money, they can’t afford to save the money needed for a down payment without assistance from their parents or family members.

Millennials have also been priced out of the housing market because they dealing with large sums of debt. The average millennial has $30,000 in student loans. This makes it difficult to save up the money needed for a down payment.

In addition, millennials have been dealing with stagnant wages while living in a world where expenses are rising at an alarming rate. Inflation is destroying whatever wealth that millennials were able to build since they graduated college and entered the workforce.