Millennials Cite Cost of Living and Student Loan Debt as Homebuying Obstacles

Sep 11, 2019

Millennials who want to become homeowners are complaining the cost of living and the lingering burden of their student loan debt are the main obstacles from keeping them away from buying property.

According to a new Bankrate survey, 45 percent of prospective Millennial homebuyers cited the high cost of living as one of their biggest impediments to securing a downpayment and covering the closing costs for a home. In comparison, 38 percent of Gen X respondents and 31 percent of Baby Boomers reported the same. Student loan debt was cited by 23 percent of Millennial respondents as preventing them from considering homebuying, compared to 15 percent of Gen Xers and five percent of Baby Boomers, respectively.

However, Millennials not only reported a higher level of savings for a downpayment compared to the other age demographics, but they also acknowledged pursuing other strategies including tapping into retirement savings and selling personal items including jewelry and cars. Deborah Kearns, mortgage analyst with Bankrate, warned that this was a bad idea.

“It’s good to see Millennials taking advantage of homebuyer grants and loan assistance programs, but their desperation becomes obvious when you see them forced to sell off personal items and tap into retirement savings at twice the rate their parents had to,” said Kearns. “Tapping into retirement savings is a risky move that can put your future at risk. You might be better off looking into downpayment assistance programs, special low-down payment loan programs or buying a less expensive home to keep your costs more affordable.”

Bankrate commissioned YouGov Plc to conduct the survey of 2,582 adults.

About the author

Phil Hall

Link copied

Published

Sep 11, 2019

Tech

Originators Rank Marketing As Their Biggest Tech Bottleneck

Four OriginatorTech demonstrations showed how vendors are applying AI and automation to content, database outreach, and loan operations

Mortgage technology companies spend plenty of time talking about faster files and smoother closings. But originators attending National Mortgage Professional’s latest OriginatorTech Demo Day pointed to a more immediate problem: marketing.Content creation and marketing topped...

Non-QM

GenWay Brings AI Automation To Non-QM Underwriting

The wholesale and correspondent lender plans to move six underwriting automation products into production within three months

GenWay Home Mortgage has deployed Tavant’s TOUCHLESS mortgage automation platform across its Non-QM and government-lending businesses, extending the industry’s push to automate underwriting beyond conventional agency loans.The national wholesale and correspondent lender is u...

Nov

Pasadena, CA

More from

Industry News

Fed Hike Raises HELOC Costs While Mortgage Rates Stay Near 7%

Prime rose to 7% while the 10-year Treasury remained near 5%, giving originators two different borrower conversations

Industry News

Sep 17, 2026

Rocket Raises Conforming Loan Limit To $845K Ahead Of FHFA

The higher limit gives brokers more room to keep borrowers from crossing into jumbo territory

Industry News

Sep 10, 2026

Rocket Pro Launches ‘Moving Squad’ To Recruit Brokers From UWM

Rocket is offering partners up to $10,000 to help bring UWM brokers onto its platform

Industry News

Sep 01, 2026

NEXA, UMortgage Leaders Explain What Drove Acquisition

Kortas relinquishes the CEO title, elevating Casa to co-equal "executive partner"

Industry News

Aug 31, 2026

Warsh Sees Housing Strain, Keeps Rate Hikes In Play

Fed chair says broader financial conditions remain loose, inflation is too high, and markets should expect less guidance on what comes next

Industry News

Aug 31, 2026

July CPI Eases Mortgage-Rate Risk, But Doesn’t Promise Relief

Consumer inflation rose just 0.1% in July, reducing pressure for a September Fed rate hike as mortgage rates remain near their highest levels of the year

Industry News

Aug 13, 2026

Popular