Millennials delaying home ownership

U.S. & World

(CNN) – The American dream of owning a home is taking a back seat for many millennials.

Data from the Urban Institute shows millennials are waiting to become homeowners.

“To a lot of people, when they see a home, what they see is debt,” David Greene, real estate expert and BiggerPockets Podcast co-host, said. “There’s a mortgage. ‘I now owe money, I’m going to be paying for 30 years.'”

The data shows several factors holding millennials back, including waiting longer to get married and have kids, as well as student debt.

However, real estate experts say buying a home can be a worth-while investment.

“When you buy a rental property, and the rent goes up every year, you get to a point where you’re making more rent than it costs and you have extra cash flow that you can use to pay off your student debt faster,” Greene said.

Greene says that those millennials who are looking to buy, the first step is to talk to a lender and get pre-approved for a loan. Next, broaden your perspective and don’t let the price tag of a home deter you from a life-changing investment.

“I’m sure their parents had the very same fears that millennials today have,” Greene said. “But look at what happened after 30 years of inflation. Real estate is an incredible investment when you hold it over the long term.”

Greene also says to focus on saving.

“A lot of times, buying real estate forces you to live within a budget, which is great for your personal finances and starts healthy habits going forward,” Greene said.

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