The nuclear family is no longer appealing for many millennials. The idea of settling down in a perfect four-person family, owning a house with a white picket fence, and drudging around in a typical 40-hour-a-week 9-5 job is not what many of us want. And while for a couple of us it may still be a large aspect of what comprises the American Dream, corresponding statistics will say that this is likely not the case.
According to the 2014 US Census Bureau Report, home ownership for millennials fell to the lowest in recorded history, and in the first quarter alone declined a ridiculous 36%. What is spurring this rapid decline in homeownership rates and does owning a house actually still matter for millennials?
Depending on who you ask, there are varying opinions on this. Neale Godfrey of Forbes, for example, concentrates mainly on the financial impacts of the Great Recession and the following weak job market to explain the declining trend in home ownership. While she does acknowledge a paradigm shift in the millennial mindset, she mainly concentrates on affordability, poor credit scores, looming university debt, and expenses as main culprits for the decline.
This is without a doubt a contributing factor in millennials being unable to purchase a home, but it doesn’t tell the whole story. As I’ve written before, the Great Recession created one of the worst employment crises in the country and a large portion of that hit millennials the hardest. However, a large portion of the decline also lies in a cultural shift.
Millennials’ conception of the American Dream varies greatly from those of previous generations
According to Trulia there are many other reasons millennials prefer renting over buying. They cite the millennial love for community, amenities, and flexibility. The innate desire millennials have to be social beings within a community drives our desire to rent and be in close proximity with each other. Additionally, amenities such as a gym, parking garage, and high speed internet may be large factors when considering where to live.
As a millennial I can tell you the primary reason why I would not want to own a house. Erase the ridiculous college debt, bills, and struggling for work, and i would likely still not pay a mortgage over renting. The reason is simple. I’m not sure where I’ll be in ten, let alone two years.
Along with being more globally conscious and socially aware, there is also a drive for millennials to continually improve their situation and climb the ladder in whatever industry they find passion. This means unlike prior generations, we are more likely and willing to take chances and move to other cities and even other countries if there is opportunity there. Buying a house is not in the primary goal of many millennials because being successful in their career is more important.
Like many things, there is a chance we will take our time longer than prior generations when it comes to purchasing a home. We are getting married later, starting families later and in turn buying homes later–but for a good reason. Millennials love being engaged in their community and immersed in their careers, and if this results in paying a mortgage later, so be it.
