Seventy-two percent of millennial renters haven’t bought a home yet because they cannot afford to.
The down payment is what most (62 percent) of them can’t afford, according to a recent survey from Apartment List. And nearly half of millennials reported they have nothing saved for a down payment. However, more than one-third have $1-$4,999 saved, and 11 percent of millennial renters have more than $10,000 saved for a down payment. Millennials with a college degree and no student debt are the most likely to have saved the most, on average, more than $10,000. Those with student loan debt have saved less than $4,000 for a down payment so far.
The report estimates that 22.8 percent of millennials with a college degree and no debt can save a 20 percent down payment within five years, and of those with student loan debt, only 12.1 percent would be able to save for a 20 percent down payment in the same time period.
Monthly payments are also a concern for 29 percent of respondents, while 38 percent said bad credit is delaying their homeownership dreams. More than a quarter of millennials are waiting to buy after they get married.
However, nearly 20 percent of millennials report they believe they will be receiving some down payment help from family. The more money they make, the more they anticipate receiving from family to help. In fact, millennials who make more than $100,000 annually expect at least $50,000 in help from family for a down payment.
Fifty-nine percent of millennial renters plan to buy within the next five years.