Why aren’t more millennials buying homes?

​​​​​​SAN ANTONIO – Millennials — anyone born between 1980 and 1998 — are buying homes at a much slower rate than their parents or grandparents for many reasons.

Real Estate Center Chief Economist Dr. Jim Gaines attributes this partially to the costs associated with buying a home, and he doesn’t just mean the down payment. 

"As you know if you have ever bought a house, when you buy a house, there are other costs," he said. 

Homebuying is one of the economy’s biggest stimulators, because people who buy homes buy all sorts of related goods and services. The related costs may make purchasing a home more difficult for millennials.

"When you pay the rent, there generally aren’t any other bills to pay," Gaines said. "But when you pay a mortgage, you also have taxes, insurance, maintenance and upkeep, homeowner fees, and the list goes on."

There are other reasons as well. ​​The new mortgage requirements that took effect after the housing bust of 2008 make it harder for a young person to qualify for a mortgage. Some also grew up with the specter of the housing crash, with many seeing themselves or people they know lose their homes.

Millennials are also burdened by far greater amounts of student loan debt than their parents or grandparents.​