WEST SPRINGFIELD, Mass. (WWLP)– Nearly 40 million Americans are spending more than the recommended one third of their income on housing costs according to new research by Demand Institute.
The study shows renters to be the most so-called “cost burdened” and that first time home buyers are generally taking longer to buy than previous generations.
“It’s expensive, by the time you pay all the bills there’s not as much left over as you’d hoped. My dad was laughing and talking with me saying that he thinks we might be the first generation that doesn’t do better than the last,” homeowner, Dan Watson from Agawam, told 22News.
The research reported that since the 2008 market crash the millennial generation have been postponing home buying because of a slow recovering job market and high amounts of student loan debt.
Real estate experts told 22News its not all bad news for the millennial generation, pointing out that the market is at its best right now specifically for first time home buyers.
Dan Rodriguez of Sears Real Estate in Springfield said, “Interest rates are still low, sellers have been on the market for a while, so they’re really ready to sell, and first time buyers have nothing to loose because they’re not trying to work off a high loan that they may have had.”
Real estate experts also say home prices have risen but are still down nearly 20 percent from 2006. Their advice to first time buyers is keep up good credit to get the mortgage interest rate, and remember your monthly payment should only cost one third of your income.