Millennial home ownership may be out of reach because there is no doubt that Millennials are struggling with debt and it’s a serious issue. We’ve addressed this problem in two previous blogs – Millennials Debt; A Plan for Escape and Gen Y Trapped: Millennials in Debt. For those of you unfamiliar with the term Millennial, the Census Canada definition is kids born between 1977 and 1994. In Canada Millennials represent a large group; they make up approximately 27% of the population. And unfortunately they also have a lot of debt, the majority of which is student loans and a good proportion can also be attributed to credit card debt.
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As a result of student debt, credit card debt and lower than anticipated salaries, many Millennials can’t even dream of buying a house and millennial home ownership is a fading dream. In fact, many can’t even afford an apartment and are living at home with their parents or sharing an apartment with multiple roommates. This situation has affected more than just the Millennials and their families; the lack of millennial home ownership has seriously impacted the housing market. “The first-time homebuyer is really absent from the market,” says David Crowe, the chief economist for the National Association of Home Builders. He says only 16% of new-home sales are to first-time homebuyers. That is half of normal. And in terms of the numbers of new homes getting built, “We’re not even halfway back,” Crowe says. This phenomenon will eventually rebound, but it will take time. Millennials will need to feel comfortable that their debt reduction plans are working before millennial home ownership, and therefore a large group of first-time home buyers, will again be able to enter the real estate market.
Millennials need help dealing with debt. Maxing out credit cards is not a solution. If you’re a Millennial in debt, you need professional help. Responsible hard working millennials deserve to have millennial home ownership included in their reality.
Contact Ira Smith Trustee & Receiver Inc. With sound professional advice and a solid plan in place, you can conquer debt. There are many ways to deal with debt which include credit counselling, debt consolidation, consumer proposals and bankruptcy. It may sound ominous, but the Ira Smith team will guide you through the process and Starting Over, Starting Now you can live a debt free life and plan for your future.
