Regardless of how long millennials are waiting to buy a home, most aren't waiting until they get married to do so.
First time home buyers used to be around the age of 26, but now over the past 20 years that age is now 33. Although millennials are holding off in some cases, the lack of a partner – or spouse - isn’t the reason.
In fact, these days most young adults are moving in with their significant others as early as 22 years old. This is due to a plethora of contributing factors including the rising cost of living, especially in large cities like NYC and Los Angeles.
Millennials are proving to the world that marriage doesn’t equal out to living with your partner or finally buying a home. Getting into the real estate market for the first time, for millennials means you’re ready to put down some roots in a city you love.
Demographer Jonathan Vespa, of the US Census Bureau issued a report about millennials putting off traditional milestones. “Young adults aren’t giving up on marriage, they’re waiting longer”, he wrote.
Changes over generations include young adults valuing financial stability and education more than building a family, at this stage in their lives.
Here are three reasons why millennials are buying homes before getting married:
To focus on their goals. Today’s young adults aren’t focused on getting married and having children before they reach personal and professional goals. This means learning in depth what it truly means to financially free, raising a credit score and learning how to consistently provide for their families.
Young adults these days are also interested in building sustainable careers before taking on such a responsibility. With so many side hustles, working remotely and changing jobs about every three years, there’s no rush to put roots down in one place.
Millennials want to own property. Young adults understand the importance and significance of owning their own homes but they aren’t thinking they must be married in order to do so. For millennials, especially of color, learning about the real estate market and property ownership are on their list of to dos.
Those who grew up in a tight financial situation aren’t trying to raise their future children in a similar situation. It’s amazing that some of our parent were able to provide for us on their wages, but millennials’ goals are to be able to give their children (and parents) a life they never had.
They’re putting off marriage. Millennials are putting off marriage but they aren’t putting off moving in with their significant others. Some people feel that marriage is an outdated and old-fashioned way of showing someone you love them. In fact, signing a 30 year mortgage is a little more of a commitment to some. Research shows that 1 out of 4 millennials have purchased home with someone they were only dating.
It may sound crazy to do such a thing to with a person you aren’t even engaged to, but if you’re already living with your partner and it’s working out, this might be the way to go. Although marriage certainly isn’t on everyone’s agenda, if an engagement is only a couple years away, what’s the point in waiting?
How do you feel about buying a home before getting hitched?