Young people between the ages of 21 and 37 known as Millennials are the largest generation in U.S. history, yet the home ownership rate for this age group is much lower than previous generations. It is not that Millennials don't want to be home owners, it is simply that circumstances and lifestyle choices makes owning a home for most of this generation difficult if not impossible.



Educational Debt



Young adults graduating from college today are doing so owing twice the amount in student debt that students did 20 years ago. Combine that high student debt with lower starting income levels than a generation ago and it is taking young adults much longer to pay down those student loans. These young adults simply aren't in a financial position to take on another debt. In fact, many of these young adults are living at home with their parents for several years simply in order to pay off those high student loans.



Higher Rent



Even those Millennials who did not choose to go to college and began working right out of high school find more of their income is going toward rent payments that past generations making it difficult if not impossible to save up enough money for a down payment on a home.



In addition, many college graduates choose to live in urban areas where jobs are more plentiful, but rents are even higher and homes for sale are selling for much higher prices than rural areas or smaller cities. This leaves educated young adults having to choose between a good job and affordable living. Most are drawn to the better jobs.



Delays in Marriage



Experts claim that since Millennials are marrying later in life than past generations this has a huge affect on their buying a home. While marriage increases the probability of purchasing a home there are some very good reasons why younger adults are waiting longer to get married.



One reason, why young couples don't get married quite so young is because of their student debt they want to pay off as well as the fact that it takes them longer to become set in their careers and feel that need to focus on careers before starting a family.



In addition to all of the things that Millennials are going through that delays their ability to buy a home is the fact that home loaners are harder to get than they were 20 years ago.



When you consider all of the factors that go into Millennials decision to wait to start their families and buy a home it is little wonder that these young people are choosing to live within their means and delaying buying a house until they are more financially stable.



While this delay may play havoc with housing sales in Miami and other cities across the country, it is perhaps the wisest things this young generation can do at least in the short term. However, the longer they wait to invest in a home, the older they will be before they have any real equity in their home.