Do you dream of owning your own home someday? The pundits want us to believe that your generation – born between 1980 and 1995 – are disenchanted with the dream of homeownership. But I, for one, don’t believe it for a moment, although for the first time in history, you’re not leading the charge in the housing recovery.
Here’s what I have heard and think:
- You are concerned about education, leisure and people. They are very important to you at this time in your life.
- You have more school debt than any generation prior to you.
- You are in a very tight job market.
- You are taking longer to settle down and plant roots in one place.
- You are delaying having children.
- You have limited savings and assets.
With all of these things to consider, many of you are waiting to purchase a home – renting now instead of buying. But renting should only be considered temporary. You will want to own a home that appreciates each year. You will want to be able to deduct interest and taxes. And more importantly, you will want a home to call your own.
The pundits have something new to say every day, especially when it comes to the real estate market and the economy, so it’s not surprising that they want to cast a pall over the dream of homeownership for young people who are simply waiting a bit longer than in past years. The notion that you, the “echo boomers,” are “out on homeownership” could not be further from the truth. Your time will come to become a homeowner, for sure.
By Pat Riley (President and Chief Operating Officer)
As an 'Echo Boomer' myself, I think you nailed it, Pat! My husband and I currently rent our home, primarily because of points 2, 3 and 6 (school debt, job market, and limited savings). More legislation like the 'Know Before You Owe' plan, which allows graduates to cap loan repayments at 10%, among other things, are a step in the right direction, since currently we have few options to reduce our debt. As college tuition continues to rise while pay rates remain stagnant, more aggressive plans will be necessary if we aspire to return to an era of manageable debt. Hopefully one day home ownership will be a reality instead of just a dream for us, though, because there are many aspects of renting we find less than enviable.
January 19th, 2012 at 10:44 am
Keep that dream alive Meredith and may I suggest that you talk to Ms Day in our mortgage Company to set hard goals for yourselves that are achievable because interest rates and prices are very conducive in the next 12 months!
January 20th, 2012 at 11:32 am
Thanks Pat! I've been talking to Cindy Wall in the Triangle, so the dream is very much alive :)
January 23rd, 2012 at 4:16 pm