According to a Stanford study, home ownership for Millennials is taking longer. This could have a significant impact upon retirement planning.
One of the reasons for the delay could be attributed to the student debt that many Millennials carry. But then, as Millennials statistically may live longer than the earlier Boomer generation, the delay may just be a statistical bump in the road.
Even though overall home ownership fell to 63% in 2016, which was the lowest level in more than 50 years, the real estate market seems to be on more stable ground right now, and buying may not be as risky. The all-time high for home ownership took place in 2005, which preceded precipitously, the great crash in 2007 and 8. That’s when subprime lending was at an all-time high.
According to the Stanford study, home ownership among Millennials stands at approximately 35.8%. This compares to home ownership among the Baby Boomer generation at the age of 30, which reflected a 48.3% ownership rate.
Another factor that is contributing to the delay in home ownership is the statistic that the median age for the first marriage is approximately 30. In 1960 the average Boomer was married in their early twenties, which then would factor into the delay in home ownership for this current generation.
So at this particular point, while the economy is strong, Millennials should begin to adopt saving strategies that will result in their ultimate home ownership.