After the end of the recession and the unemployment rate returned to normal levels, Millennials were predicted to increase the homeownership rate.
As this group (mainly born between the 1980’s and 2000) becomes the same age as when preceding generations were historically known to become homebuyers, Millennials are doing the exact opposite. The homeowner rate has continuously declined since 2004, and especially those under 35 have decreased that number from 44% to 35%.
There are many factors that could hold this analysis to be true. For one, the drop in homeownership for Millennials can easily be correlated to the dramatic rise in student loan debt. This is factored in by the scarce amount of jobs after the recession ended, which promoted younger people to go to college instead of the workforce. Hoping to delay the time until the economy grew back and to be more marketable for these jobs, college was a great option.
Resulting from this, we can easily see why homeownership is down. With more young people going to college, there’s obviously going to be more student loan debt. With more debt, it’s harder to accumulate down payments and quality for a mortgage.