Millennials & Mortgages: Generation is Struggling With Down Payments, Sometimes Getting Help From Parents
LendEDU’s two-part millennial & mortgages study examined trends among current millennial homeowners.
When the 2008 Financial Crisis struck, millennials—now between the ages of 23 and 38—were either just old enough to fully grasp the severity of the situation or were well into their careers.
It is well documented that the recession was ignited by a subprime mortgage lending crisis. Operating in a wild west lending environment, financial institutions were supplying mortgages to consumers whose finances really should’ve prevented them from qualifying.
This led to obscenely high mortgage default rates that led to the eventual bursting of the subprime bubble.
With millennials having a front row seat to the mortgage-induced financial crisis, LendEDU wanted to better understand how this generation is approaching the home buying experience, specifically as it pertains to mortgages.
Millennials are now the largest living generation and make up a vital component to the economy as they are either in or are approaching their highest earning years.
This means that this generation will be absolutely crucial in keeping the housing market healthy. And if history tells us anything, it’s that home ownership is one of the pillars of a thriving American economy.
Part one of this study of 1,000 millennials analyzing home ownership and mortgage trends for this generation, specifically pertaining to millennials that already own a home is here: See full survey results here.