Blog / It's Time to Stop Renting: Why Young People Should Consider Owning a Home

Couple rejoices at their purchase of a new home

Millennials everywhere agree on one thing in particular: the economy just isn't what it was when their parents and grandparents were young and ready to start their lives.

One of the biggest manifestations of this change in economic conditions is a downturn in young adults purchasing their own homes. Compared to previous generations, millennials own far fewer homes, opting instead in most cases to pay rent.

But maybe it's time to reverse the trend. Millennials should be buying more houses. Here's why:

Renting is Worse for Your Finances

If you are currently renting a home or apartment, you are probably spending far more per month on housing than your home-owning counterparts. Think about it -- the average rent for a 2BR home in the state of Texas is $1,049 as of July 2018.

And while your mortgage payment when owning a home greatly depends on how much home you buy and how long you intend to make those payments, they can be structured in ways that accommodate your financial situation.

Another aspect of renting is the fact that you are not truly getting anything out of paying it in the long run. When paying each month on a mortgage, you are actually working toward something with an end goal. At the end of a mortgage, the home is yours. Rent, on the other hand, is just renting.

The extra money you spend each month on overpriced rent is simply getting you nowhere financially. Think about all the money moves you could be making instead. Even if you were to move to a cheaper rental home or apartment (something you should absolutely consider regardless), the money you spend could still be utilized more efficiently elsewhere.

Your Debt Isn't as Scary as You Think

A major reason why many millennials refuse to consider owning a home is the looming shadow of the mountain of college debt. It seems inescapable, and a sure nail in the coffin of prospective homeownership.

But in reality, your college debt is both manageable personally and forgivable in the eyes of lenders. You aren't the only one out there who understands what it means to have college debt. Lenders know the difficulty student loans have become for the 44 million Americans who are currently paying them off.

That's why banks and other mortgage lenders are actually comfortable providing home loans to people with student debt. If they refused to accept people with student debt as customers, they would quickly run themselves out of business! In fact, many of those lenders may even offer debt consolidation and refinancing options to make your student debt payments more manageable.

So think about it. Do you want to live your best life, in a home that you can call your own, working toward a better financial future?

Stop renting as soon as possible. Find a home in which you can see yourself comfortably living your life, and consider the prospects of becoming a homeowner. It'll be better for you both in the short run, and in the long run when you have something to call your own.


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