Younger Generation is Delaying Home Buying

Updated: 07/29/2014 10:39 PM By: Tim Sherno

As the Twin Cities housing market continues to recover, a new study shows one group is not participating in the recovery.

Herb Tousley, Director of Real Estate Programs at University of St. Thomas, says so-called 'millennials,' people between the ages of 25 and 34, are staying on the housing sidelines, "It seems like they're waiting longer before they purchase their first home."

Tousley cites a Harvard Joint Center for Housing study that finds 52 percent of millenialls who rent could afford to buy a home but delay purchasing, "It's hard to pin down an exact number, but I'd say four to six years longer than maybe a generation ago."

One possible factor, according to Tousley, is student debt, "They're waiting longer because they want to get that paid down so they can qualify for the mortgage they need so they can get the house they want."

Tousley also believes a more transient early work environment may make millennials hesitant, "They don't want to commit to a purchase quite yet because they're not settled in their career."

According to Tousley, millennials will ultimately join the ranks of home owners in Minnesota, "They're going to buy a home eventually. Minnesota, if you look around the country, we're one of the highest home ownership rates in the country. We're a little bit over 69 percent."