How are millennials affording their mortgage payments?
Millennials are less apt to be using alternate methods to pay for their home, according to a recent Redfin survey, compared to July 2018. In March 2019, just 7% of millennials reported that they co-owned a home with a non-partner to afford the property, down from 14% in the previous study. Only 10% are renting out part or all of their home via a site like AirBnB to help pay the mortgage bills, down from 12%.
“Over the last couple years, millennial household incomes have been rising, and America’s youngest professionals now earn more than previous generations did at this age. As a result, they’re needing less and less help from family members to buy a home,” said Redfin chief economist Daryl Fairweather. “A lot of that increase in millennial household earnings has been driven by millennial women, who are working more and earning more than women of previous generations. Millennials may have postponed getting married, having children and buying a home while they got their careers on track, but now that they are more established in their careers and earning more, I expect to see more millennials buying homes and checking off those major life milestones.”
And more millennials are working a second job to afford their mortgage payments. Thirty-one percent of respondents reported that is how they are offsetting mortgage costs, a 2% increase from eight months prior. Eleven percent of millennial homebuyers said they have roommates or plan to get one, a decrease of 3%. And less millennials are relying on their families for help. Only 10% said that their parents or other family members are helping them with mortgage payments, down from 17%.