Millennials may have to spend more than a decade saving for house down payment
July 19, 2019 05:34 PM
ALBUQUERQUE, N.M.- Albuquerque is among a long list of cities where saving 20% for a down payment could take more than a decade.
According to a 2019 home affordability report, millennials may find themselves priced out of the housing market.
The report says it will take an average of 14 years to save the traditional 20% down payment.
In Albuquerque, it’s estimated that it will take millennials 16 years to come up with the 20% down payment.
John Lopez, president of the Greater Albuquerque Association of Realtors, said student loans are a big part of the problem.
“They've played a major factor these last few years and with the mortgage industry getting tightened up post-recession, I think a lot of those different dynamics are kind of prohibiting this next generation from really taking advantage of being a homeowner," he said.
Lopez wants people to know that there are other ways to become a homeowner.
He said first-time home buyer programs come with a lower down payment. However, they come with more costs that are paid over time.
Lopez said homeownership isn’t for everyone, especially millennials.
I'm feeling, most likely, millennials have big eyes,” he said. “They want to travel the world."
A bankrate.com survey found 63% of millennials who bought homes regretted it, citing on-going costly maintenance as the biggest reason.
Updated: July 19, 2019 05:34 PM
Created: July 19, 2019 04:34 PM
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