Millennial Generation Report Reveals Debt Pressures; Limited Home-Buying Potential

A new survey, which could serve as an indicator of future home-buying patterns, reveals that the average member of the Millennial Generation is in debt to the tune of nearly $120,000.

The report, published by the real estate site Real Estate Witch, indicates that upwards of 90% of those born between 1981 and 1996 have just over $5,300 in credit card debt, and student loan debts of just under $127,000.

Despite the significant differences between those two figures, more Millennials, at 67%, owed money on credit cards, with 48% saying student loans comprised their number one debt.

The report also points to differences in average student loan debt of $111,000 for Millennials in their late 30s and early 40s, while those in their late 20s and early 30s, have an average student debt load of $135,000.

The report, based on interviews with around 1,000 Millennials, additionally reveals that some 53% currently own a home. But of those who do not own a residence, a significant 30% said they doubted if they would ever have enough money to buy one.

“Millennials who spend a significant portion of their monthly income on rent have little left over to save for a down payment in increasingly expensive homes,” the report notes, adding: “As interest rates rise, making borrowing more expensive, homeownership becomes even less attainable.”

Although Millennials on average have just under $50,000 in savings, up to 41% said they feel “pessimistic” about their finances.

In pointing to their biggest financial regrets, not saving enough money, going into debt, and not investing sooner, were named as the three biggest things that Millennials say they wished they had avoided.
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Despite stated fears about the cost of owning a home, only 12% regarded home ownership as a source of regret.

By Garry Boulard

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