More People are Holding Off Their First Home Ownership

by San Antonio Attorney

More and more younger people are holding off home ownership. Not enough money on hand, weighted down by student debt and unstable jobs, many younger adults and not so young are still living in apartments for a longer time and purchasing their first homes later.

The usual first-time buyer now rents for 6 years before purchasing, which is 2.6 years longer in the early 1970s. The average age of first-time buyer is 33. An era ago, it was about 30.

This shows a reality that renters are struggling to come up with the amount of down payments as wages have mostly gone stale. In addition, they are also facing delays in some crucial landmarks of maturity, from marriage and children to a steady career, as reported by the government and industry.

These changes help demonstrate why home ownership, which is essential to economic opportunity and middle-class identity, has began to diminish. The number of the American population who own houses has fallen to 63.4 percent, the lowest in the past 48 years.

When the time comes for the young adults to purchase the house, their cost is now considerably higher, compared to their income, than it was many years ago. Those who are buying for the first time are paying an average price of $140,238, almost 2.6 times their wages or income. Back in the 70’s, the beginner home was only 1.7 times the buyer’s income.

Experts say that millennials still have a strong desire to purchase homes, but that their time frames for buying rely upon attaining more security in their careers. First-time buyers are usually dependent on personal savings to cover most of their down payments. However, the increase costs of renting have made it difficult for them to save up. The increase of rental prices across the nation is caused by the growing number of people who are renting, regardless of age.

Seeking legal advice from an attorney is sensible because of the complexities that come with real estate. An experienced Real Estate Attorney San Antonio can help to protect your interests and make sure that your transaction complies with the applicable rules of your municipality or state.

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