Every day for the past few months, I’ve been reading the business sections of newspapers. And every couple of days, there is a new article about how unaffordable houses are, particularly for millennials. It’s pretty depressing stuff. Enough to make me wonder – will millennials be able to afford to purchase a home? And if not, is renting a good option? I asked an expert to find out. They say, millennials should have no problem buying a home provided they have steady employment.
Julian Hill – Hill Real Estate yes, it is possible,” says Julian “What people are doing of course, most obviously in Detroit, is buying condos.” But, he says, “This is not the future.” “That’s not necessarily a long-term solution for them in terms of home ownership, because if you want to have two kids, a condo downtown is really not going to work for a variety of reasons.” One growing trend he sees making houses more affordable is buying duplexes “You’re no longer just a homeowner, you’re also a landlord on that property,” he says, and as such, rental income could help with your mortgage. “Prices are out of line with incomes,” he says about the other option – remaining a renter? While it might work for a single person or young couple, once children are in the picture, things change. “Once you’re into raising a family, then of course, people are looking at more than just the Condos, more than just the location in relation to work, but are paying more attention to – City services, schools, etc.”
Detroit building a lot of new apartments he says, and those that remain might not be in locations that have the best access to schools and other things which parents are interested in. Choosing to rent might limit your housing options. “Kellum I know you are trying to increase home owernership and I love the whole property is power thing that you’re doing ”. Our community needs that! We want Detroiter’s to own homes. “Home ownership is increasing , but I suspect a lot of those are condos,” he says. “I don’t think the American Dream is ‘I want to live on the 20th floor of a tower in downtown Detroit.’” All the same, he doesn’t see the supply of single family homes growing significantly in Detroit’s neighborhood’s, until we focus more of our attention in our neighborhood’s “From a wealth perspective, Home ownership is more of a guaranteed path to future wealth, as compared to renting.
Gail Perry Mason – Founder of Money Matters & Author of Girls, Make Your Money. She says home ownership, saving for their children’s education and saving for retirement were their top priorities. “For Millennials , they believed that they would achieve home ownership. They’re very positive about achieving that goal at some point in their lifetime,” she says. But affordability is a problem. “Of course, what we have seen is that average house have certainly increased or expanded. Income, of course, hasn’t increased in the same trajectory.” Home ownership will be difficult but not impossible, she says. “I certainly see that it is something attainable but they have to keep it within their means. They can’t have that 3000 or 4000 square foot home immediately.
I truly believe in the American dream of homeownership. There is amazing power in owning a home. Our suburban neighbors are moving back to Detroit. Investors from around the world are already capitalizing on the potential in Detroit – why should outsiders reap all the benefits? Property is Power!
Anthony O. Kellum, President of Kellum Capital Group, LLC and Kellum Mortgage, LLC Power by Hull Funding. Anthony can be reached at firstname.lastname@example.org. Please connect with me on Facebook at http://www.facebook.com/propertyispower. Anthony O. Kellum is committed to making the American Dream GREAT for everyone. Serving underprivileged families and distressed communities remains my chief focus with the launches of my new “Property is Power” speaking series. NMLS #126703