A Millennial’s Perspective on the LA Housing Market
June 26, 2016 6:24 pm
Owning a home is one of the hallmarks of personal success. It demonstrates stability, as the home you purchase can be a source of security for generations. Millennials just entering the market are proving a little more reluctant to buy homes in the same manner that their parents and grandparents did. Many people, including the demographic in the spotlight here, are asking, “Can Millennials afford LA homes?”
New Homes in New Locations
Homeownership among Millenials is less common than it has been for past generations. Factors such as student loan debt and a gradually recovering job market have inspired people in the Millennial housing market to consider a greater variety of LA neighborhoods and options such as condo ownership in order to stretch their housing budget to its greatest value. However, the apparent reluctance of this generation to buy homes is not necessarily due to strictly financial reasons. Other reasons might include:
A negative perception of homeownership due to the housing crash of 2008
A preference for the flexibility offered by renting
A need or desire to live in highly urban areas where free-standing housing is scarce
Preferences for the convenience offered by condos and other managed housing options
Space Can be Hard to Afford
High housing costs can significantly restrict how much space a potential Millennial homeowner can afford. With each square foot calculated to cost a few hundred dollars, an average three bedroom home will have a mortgage higher than most Millennials can afford. For many people in this generation, renting simply makes more sense in the short term.
A Real Estate Agent Can Help
However, home ownership should not be written off as an impossibility. Condos and other similar properties can be very affordable and will provide Millennials with many of the same benefits as traditional home ownership. We represent many properties in SoCal and can help clients looking for homes within a certain budget. Contact Levine Homes today to find hidden housing gems.
