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Although Millennials seem to be taking over the housing market, nationally, 12.3% of Millennial renters say they plan to keep renting.
Last year, 10.7% said they plan to always rent, up over 2%, a study from Apartment List said.
For most, being able to make a down payment is the biggest struggle when it comes to purchasing a home.
In fact, nearly half of Millennial renters have no down payment savings, according to the study.
Another major barrier for this generation? Student debt. Even those who are debt-free are only saving about $100 more a month than those who have the burden of paying off loans.
Almost half of Millennials with no college degree have $3,221 saved for a down payment, while 50% with a college degree and debt have $8,200 saved for a down payment.
Meanwhile, 58% of Millennials with a college degree and no debt say they have an average of $18,914 saved for a down payment on a home.
According to the report, only 25% of Millennial renters will be able to afford a 10% down payment on a median-priced home in the next five years.
If student debt payments were forgiven, then the amount of renters able to afford a down payment would increase to 38% nationally, and more than 50% in some metropolitan areas like Minneapolis and Houston.
San Jose has the highest amount of Millennials who think they’re going to rent forever, 18.2%. Meanwhile, Nashville, Tennessee has the lowest amount, 3.6%.
However, 69% who say they plan on renting forever say it’s because they can’t afford to purchase a home, while 70% of those who are waiting to buy a home also can’t afford it at the moment.
