Why most Atlanta millennials can't afford homes
Add Axios as your preferred source to
see more of our stories on Google.
Young people in Atlanta and nationwide can't afford to buy homes without major budget changes or help from family.
What's happening: Nearly three-quarters of aspiring homebuyers say affordability is the top obstacle to ownership, Axios' Brianna Crane reports.
- A Redfin report found that 38% of recent buyers under age 30 received family money to afford their down payment.
Zoom in: Millennial mortgage applications were slightly down .70% in Atlanta for the first half of 2023, compared to the same time last year, according to figures LendingTree shared with Axios.
- In the first half of 2022, nearly 52% of LendingTree's mortgage requests nationwide came from millennials. In the first half of 2023, it dropped to roughly 50%.
What they're saying: Metro Atlanta didn't build much housing during the Great Recession, and builders took on only very low risk, secured contracts afterward, according to Atlanta REALTORS Association president Michael Fischer. He says that's not generating enough supply to sustain the market affordably.
- He also said there's less movement in the market because "empty nest" homeowners have too much equity in their houses to downsize.
Be smart: "You can build wealth just fine by renting," says Bankrate Chief Financial Analyst Greg McBride.
- Taking time to save, invest, build your credit and advance in your career can meaningfully improve your financial picture, he says.
- Homeownership "sucks the cash right out of you," at first, McBride says. You need to save beyond the initial down payment to weather unexpected additional expenses — the No. 1 reason millennial homeowners have buyer's remorse.
Yes, but: "If you can afford to buy, it's generally less expensive than renting. It's certainly less volatile," Fischer said.
- Fischer says millennials need to save money and use lending programs.
- Work with realtors to find housing in alignment with your homeownership goals.
- Look outside of metro Atlanta if you commute to work once or twice a week.
- Most people think rates will "relax a little" in 12 to 18 months, he said.
The latest: Housing industry groups are urging the Fed to stop raising interest rates.