Millennials, those between the ages of 21 and 34, are often dubbed the “renter generation,” as the sweet combination of low income and high student loans prevents them from buying homes as their parents did at that age. But according to CNBC, four in ten millennials have made the leap to purchase a house, eager to spite older generations who mock their choices.
Unfortunately, most of those millennials regret their decision — 68 percent, exactly — according to a study by Bank of the West. CNBC explains that there are several reasons this is the case:
1. Making a large down payment
Of the millennials they surveyed, Bank of the West found that one in three who purchased a home dipped into their retirement funds to make their down payments. Along these lines, Realtor.com analyst Danielle Hale told CNBC that purchasing a home that is initially out of your price range is a poor decision to make, as appealing as it may sound in terms of home quality and size.
2. Underestimating costs after purchase
When purchasing a home, many millennials forget how high maintenance costs can be. Without a landlord to call to make repairs, home owners are completely financially responsible for fronting the money to keep their houses in good shape. Of course, they are aware of the normal costs–heating, electricity, etc.–but are underestimating surprise expenses.
3. Settling for a house they don’t like
On the flip side of #1, two-thirds of millennials reported that they ended up compromising on a feature of their homes, for lack of funds to find a house that fits their standards, or for lack of expertise in this area. A consequence of this is that many millennials end up dissatisfied with their choice, and later regret their purchase altogether, perhaps a waste of money.
Are you looking for digital journalism training and experience? Are you a journalism major who wants to take your career to the next level? CMN’s Digital Journalism course gives you real-time experience, intense feedback on your writing, exposure to journalism influencers and mentors, and a great place to display your work. You can get academic credit too. Check out the Digital Journalism Course here.
Sign up for the Morning Scoop
Temple University Professor Marc Lamont Hill Faces More Trouble Over U.N. Speech
The Temple University professor is under fire from Temple for a U.N. speech critical of Israel.
Michael Bloomberg Donates $1.8 Billion to Johns Hopkins University
Bloomberg's gift is one of the largest ever donations to higher education, but it hasn't garnered the praise that the...
Betsy DeVos Reinterprets Title IX: Victims Must Bear the Burden of Proof
Opponents of the policy say that it would favor the accused over the accuser.
This Heartwarming Story Turned out to be too Good to be True
Couple who decided they wanted to do the right thing by raising money for a homeless man turned out to...