By Maria Mascola, HUD Certified Foreclosure Specialist
The Waterfront Project is a free clinic helping in both Pre-Purchase and Post-Purchase Counseling. We understand the current difficulties due to the economy, rising housing costs, and interest rates that are affecting so many people’s ability to cross over from renting to homeownership. Working together, we can assist with budgeting and offer an opportunity for you to see if you qualify for down payment assistance programs. We have the resources and skills to get you into your home! It may take some time but developing a realistic plan and reaching goals will help solidify this dream!
Here is some information as provided by the National Association of Realtors:
- In 2025, millennials show renewed interest in homeownership, with a significant increase in purchasing intent, though high prices, student loan debt, and affordability challenges remain major obstacles.
- While affordability is the biggest barrier for many, there’s also a segment of millennials who are actively preparing to buy, potentially due to a combination of higher incomes, a desire for stability, and a belief that the market may be stabilizing.
- Millennials are also influencing the luxury market and facing pressure from investors and older buyers in competitive areas.
Key 2025 Millennial Homebuying Statistics:
- Increased Intent: The proportion of millennials intending to buy a home in the next six months rose to 23% in early 2025, up from 15% in late 2024, indicating a growing pipeline of first-time buyers.
- Affordability Crisis: A significant hurdle is affordability, with many millennials struggling to save for down payments and facing high home prices that have outpaced wage growth since 2019.
- Debt Burden: Student loan debt remains a major obstacle, with 67% of millennials citing it as a significant barrier to homeownership.
- Market Averages: The median home price in the U.S. is around $430,000, more than six times the median millennial household income of $70,000, making a 20% down payment (over $86,000) a significant challenge.
- Competition and Market Dynamics: Millennials face tough competition, often from investors and older, more cash-rich buyers. The luxury market is also seeing a new wave of energy from millennials, who are reshaping it with a focus on design and convenience.
- Factors Driving Purchases: Desire for ownership, the need for more space, and investment opportunities are key motivations for buying. Some millennials also get financial help from family to facilitate purchases.
- Shifting Priorities: Compared to 2024, fewer 2025 millennial buyers expect to make concessions on home characteristics or pay over the asking price, suggesting a shift in the market’s intensity.
Challenges and Considerations
- Historical Slowdown: Millennials are the third consecutive generation to attain homeownership at a slower rate than their predecessors.
Reach out to us to discuss further! Together we can make your dreams happen!