How Can Millennials Make Housing More Affordable?

By far the biggest difference between Generation X (known as the Baby Boomers) and Generation Y (also known as millennials) is housing. Sure, there are other differences that separate them - but the housing situation is top of the list. For example, home ownership among this generation has fallen to a 30-year low and there’s no sign of a recovery anytime soon.

One of the major causes of millennials not buying homes is a stagnation in wages at the same time as rents have increased. When Gen Y has to pay high rental costs, then there’s not enough money left over to save towards a house deposit.

For some of this generation, the idea of not buying a house for much longer than the previous generation will not be an issue. House ownership roots you to one place, which isn’t ideal for a generation where over half of all 35-year-olds are working outside of their home state. Being able to move is crucial to adapting to the millennial job market, so for some, the idea of not being able to own a home is not too troublesome.

For others, however, it’s a real bane. They can be married, settled, perhaps even with children of their own - and yet they can’t afford to buy a house. Services like AirBnB have not helped, either - housing stock is being snapped up for short-term leases as they offer the best return on investment. The market for house buying has never been so competitive, especially in the big cities. San Francisco, for example, draws direct links between AirBnB and their housing shortage.

So what can you do if you’re a millennial, you want to own a home, but you find yourself priced out of the market?

1. Accept You Might Need To Buy A “Fixer Upper”

People who are buying houses for the sake of investment only don’t really want a “fixer upper”, so there’s more of them available. The likes of West Coast Cash Buyers have properties on offer for affordable prices, but they’re going to need a bit of work. So if you’ve got the time and patience for flexing your DIY skills, then this can be a route onto the housing ladder.

2. Live At Home

More and more millennials are making the decision to move back home while they save for a deposit on their home. It can be a difficult step to take - most of us embrace the freedom that comes from living under our own roof - but it can be essential way to save money on rental costs and put the money by for a deposit.

3. Look For Properties Outside Of Cities

The idea of a long commute is not something that any of us find appealing, but it can make a difference when it comes to house prices. Buying in a city is notoriously expensive. If you keep running up against prices you can’t afford, then look towards the suburbs - it might take longer to get to work, but your money will go further when it comes to property.