COVID-19 Could Delay Millennials’ Homeownerhsip
June 15, 2020
Young Americans do not face severe health risks from the coronavirus, but they still have to contend with the pandemic’s economic fallout. As millions of Americans dig into their savings to get by, millennials will take longer to build back their savings. This means that millennials, already well behind other generational cohorts in terms of homeownership, could have to put their plans to buy a house on hold.
A new report from Realtor.com found that on average, it takes a millennial nine months to save one month’s worth of expenses. If a millennial were out of work for six months, it would take 53 months, more than four years, to recoup their savings.
While many will not be out of work for six months, the millennial unemployment rate is 13.4%, and they are already struggling to save enough for a down payment. While most experts suggest a 20% down payment, the average millennial homeowner put down just 8%. As savings accounts get cleared out across the nation, the generation may have a hard time saving even that much in the coming years.