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Bloomberg: Why Milennials Aren't Buying Homes
Friday, September 13, 2013 6:50 AM

The housing recovery may be well underway, but this recovery is virtually millennial-free, according to a Bloomberg report. In fact, according to Census Bureau data, from 2006-2011, Americans between the ages of 25 and 34 experienced the largest decline in homeownership rates in the country.

There are a number of obvious reasons for the decline, including significant student loan debt. The CFPB estimates that of the roughly $1.4 trillion that Americans owe on school loans, 67 percent of it is owed by people younger than 40. They've also got a few thousand dollars in credit card debt, and many are either unemployed or underemployed.

There are also more personal reasons these traditional first-time buyers — America’s largest generation — are not getting in: they don’t like what they’ve seen. Millennials have seen their parents struggle firsthand. And they've seen their neighbors lose their homes, too. As a result, they're nervous they could find themselves in a similar position — and all too easily.

Another contributing factor is perhaps, it’s easier with mom & dad. A study from Pew Research reveals that 36 percent of Millennials (or one in three) are still living under their parents' roof. Not since the 1960s have so many young adults (a record 21.6 million) resorted to living at home.

Millennials also value mobility. While the vast majority say they would like to own a home at some point, it's certainly not a priority now, especially given the changing work environment.

(Source: Bloomberg)