Waiting On The Wedding – Millennials In Favor of Home Ownership First
Millennials, or those born after 1980, are disrupting just about every institution they become involved with. They embrace the sharing economy and often reject the traditional ideals of full-time work in favor of self-employment. As a result of these trends, as well as the high amounts of debt from expensive college educations and coming of age in a recession, millennials did not immediately embrace home buying as seen in previous generations. Consequently, millennials frustrated the housing market for years, with industry experts wondering if Generation Y would ever settle down. Once again, consumers in this age range are now looking to invest in property. Interestingly, though, if it comes down to choosing between a wedding and a mortgage, millennials are more likely to choose the latter.
In the past, getting hitched and then finding a home was the natural order of things, though millennials feel differently. A recent survey from Redfin found 38 percent of millennials either would or already have put off a wedding to buy a home.
Waiting on the wedding
Why are millennials putting off their vows in favor of buying a home? There is likely a combination of factors at play. A growing number of millennials don't intend to get married at all. In fact, marriage rates have been declining steadily since the 1960s, according to Pew Research. However, there are other reasons, as well. Young people today who are interested in marriage are simply waiting longer to do so. The median age for marriage is now 27 for women and 29 for men, up significantly from 1960, when women and men were getting married at 20 and 23, respectively.
More committed couples may simply be putting off marriage, but this doesn't mean they aren't cohabitating. According to Pew, about one-quarter of unmarried young adults between 25 and 34 years old are living with a partner. All in all, perceptions of marriages are changing.
Perhaps the biggest reason for this change is how expensive weddings can be. According to a survey from wedding website TheKnot.com, the average wedding costs almost $30,000, without taking the honeymoon costs into account. In contrast to investing in a one-time event – albeit a memorable one – a house is a sound and lasting investment, and since it can take a while to pay it off, it's better to start earlier rather than later. Many couples decide the wedding can wait until they've put down a few house payments.
A home demonstrates commitment
Buying a home together is a serious commitment not unlike marriage itself. It requires great trust, as well as full knowledge of one another's financial situations. Deciding to buy a home means that both partners are truly committed to a future together. This could be why, according to Realtor.com, 80 percent of couples who buy a home together believe the purchase strengthened the bond between them. Young couples don't necessarily need to choose between a home and a marriage ceremony, and when the choice arises, purchasing a home can seem like the smarter plan. As marriage becomes less of a priority to millennials than financial stability, it's likely that more members of this generation will start looking for homes before booking a wedding venue.
For couples who do decide to buy, now is a great time to do it, while mortgage rates for home loans are historically low. Many couples already live together, and it's often smarter to invest in a house rather than paying rent, month after month. As wedding season draws nearer, couples should take a moment to think about the option of home ownership today, and if nothing else, begin planning for it to be a part of their future.
Couples interested in buying a home should contact our team today.
Article and Images provided by. WJ Bradley Mortgage and Capitol LLC
This is a eye opener and yet so much truth to it. I have see this first hand, shopping for the home together before going to the alter. My comment : This is not uncommon- Planning and paying for a wedding is and can be like putting a downpayment on buying a home. this generation understands the stresses of saving money and how best to invest it. Two single people buying a home together does require a lot of trust and planning though. The home is not community property until you are married. Please look at all possibilities on how you structure the purchase- are you both structuring ownership, 50/50? Are you both on the loan?