Millennials Prepared to Go away Dwelling State for a Cheaper Home

As millennials navigate an increasingly challenging housing market, many are ready to up and move in search of better prices.

In a new Bankrate survey, 33 percent of millennials said they were willing to move out of state to find more affordable housing. But there were plenty of other sacrifices they’d make to find a better housing deal.

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The same, roughly one in three, said they’d be willing to downsize their living space or buy a fixer-upper if the price was right.

Meanwhile, a bit less, 29 percent, would move away from friends and family, and 27 percent said they’d move to a less desirable area.

“It may not be an ideal time to purchase a home, but for many millennials who have delayed buying property, they’re entering a new phase of their lives where ownership is not just more attractive, but also important to their financial futures,” Alex Beene, a financial literacy instructor at the University of Tennessee at Martin, told Newsweek.

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“The problem remains affordability, and I think some millennials have reached their breaking points where they’re ready to relocate or buy a fixed-upper just to be homeowners.”

Millennials weren’t as excited about the prospect of taking on roommates to get a cheaper home, as only 24 percent said they’d be willing to sacrifice that, and 19 percent said they’d move farther from work and deal with a tougher commute time.

In today’s housing market, millennials have had to get more creative about the ways they go about buying a home. High mortgage rates and home prices routinely keep the younger generations out of the market as affordable housing supply runs low.

Since many more millennials are unmarried than their elders, 42 percent have purchased a home solo, compared to just 32 percent of Gen X-ers and 22 percent of Baby Boomers.

“I decided to buy a house alone because I didn’t want to wait for marriage, and I’ve always been someone who’s super independent and ambitious,” Selena Trevino, a 27-year-old homebuyer in Portland, said in the report. “I always do things on my own, so once the opportunity was there, I wanted to use it while I had it.”

Meanwhile, one in 10 millennials had purchased a home with a friend and 7 percent said they bought one with a relative. That’s a large amount that historically would have purchased with their spouses, but as millennials delay marriage or forego it altogether, the tides are changing.

“Traditional marriage and the structure of our economy has shifted,” Kevin Thompson, a finance expert and founder/CEO of 9i Capital Group, told Newsweek. “Women are now earning three out of five master’s or doctoral degrees and are entering the workforce in droves.”

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Still, the homeownership dream is out of reach for a significant chunk of millennials. Roughly 37 percent of millennials said they feel it’s a bad time to buy a house, according to Bankrate’s recent Down Payment survey, and experts say it hasn’t been as challenging to buy a home since the 1980s.

“Home prices are much higher than they were some three to five years ago, and the higher rates mixed with higher valuations can be a barrier to entry,” Thompson said, adding that the market will likely slow down and consolidate before picking up again.

“The assumption is for houses to consolidate their rise here until they begin their natural ascent in regard to valuation. As more houses come into the market, prices should come down.”