What's keeping millennials from buying? Surprisingly, it's not the mountain of debt, wrong time of life or lack of desire... it's actually enabling parents. Time magazine had this to say on millennial's, "if millennial's are self absorbed little monsters who expect the world to come to them and for their parents to clean up their rooms well into their 20s, we've got no one to blame but ourselves, especially the moms and dads among us."
That's a pretty harsh statement but surprisingly, more and more parents are doing so much for their kids these days that they think, why bother to move out when I got the best life right here?
We've probably all seen these videos on Facebook and social media talking about how entitled millennial seem to be these days but even though millennial's will be driving the housing force in the next 10 to 15 years or even longer, what is it about them that will push them out their parents door?
According to a Goldman Sachs Report there are over 3 million more young adults living at home they just 10 years ago. Kids don't seem to be moving out anytime soon and even though the job market is better and the economy is recovering nicely, many parents simply can't get there adult children to leave. Like Time said, it may be nobody's fault but our own. We've done so much for them over the years that they feel entitled to stay as long as they like, eating our food, using up our energy and bandwidth.
However, some millennial's are still buying homes but not quite to the number we were hoping for at this stage. Could this change? Absolutely! As baby boomers start to retire, more affordable homes come on the market and more options for debt consolidation, loans and financing incentives become available, more and more millennial's will find that having mom and dad pick up your shoes and clear away the dishes is not that appealing over total freedom and life on your own.
Not all millennial's are in this demographic. Many millennial's are simply getting a bad rap for being entitled and unwilling to work but there are those that are breaking the stereotype and enhancing the workforce with determination and motivation. What we have to convince them is that it's okay to buy a home that they can afford now and then work their way up to a home that they really love to their future needs. Many of these millennial's are simply waiting until they can afford that dream home before even thinking about jumping into the real estate market.
I believe it's okay to start low and build equity, finances and a buffer so that when you are ready to move up, you have the equity and the capability to do so. But, I also feel that it's important for parents to push their adult children to independence so they can start growing their own financial portfolio and building a great life of their own.