Being a millennial myself, a real estate blog with an infographic on millennials created by Avant caught my attention. In real estate circles, there are a lot of discussions about millennials and their role in the housing market recovery.
Millennials are expected to be the typical first-time homebuyers. Younger buyers play an important role in that they typically buy starter homes, which allow existing homebuyers to sell their homes and move up, thereby triggering an increase in home sales. The reasons given for the decline in first-time homebuyers is that they have too much debt from student loans, their income is not high enough and credit criteria has tightened. According to the Federal Reserve Bank of New York, the percentage change in first time homebuyers from 2001-2014 for Oregon is a 45 percent decline.
The Avant infographic has some interesting information about significant factors affecting millennials' inability to buy homes:
-The average millennial makes $20,000 per year less than the US average ($30,000 vs $50,000).
-The average millennial's credit score is 625, whereas the US average is 695.
-Only three percent of millennials have taken out a mortgage, but 14 percent have auto loans, 24 percent have student loans, and 27 percent have credit cards, and their average debt is $52,120.
Some lenders are adjusting their standards for millennials. SoFi is opting not to use FICO scores and instead evaluates other criteria, such as the existence of saving accounts, the ability to pay rent and timely payment of utility bills, which are not reflected in credit scores. If more lenders follow suit, this will open the housing market to these buyers, many of whom are paying way more rent that they would be paying for a mortgage.
Address: 1255 NW Newport Ave, Bend, OR 97701
1 beds, 1 bath, 608 square feet, .07 acre lot
Built in 1927
Listed by Stellar Realty Northwest
Address: 61752 SE Bridgecliff Dr, Bend, OR 97702
3 beds, 2.50 baths, 1719 square feet, .10 acre lot
Built in 2016
Listed by Fieldstone Services
Address: 2046 NW Perspective, Bend, OR 97703
3 beds, 3.5 baths, 3185 square feet, .58 acre lot
Built in 2004
Listed by Coldwell Banker Morris Real Estate
Photos and listing info from Central Oregon Multiple Listing Service