Millennials have received a bad rap. Some of it is deserved and some of it is not. Yet, it is having a serious affect on the larger consequences of life. In the way of home ownership and financial stability, millennials are in a weird middle place. They want to take out loans for a mortgage on a home. Yet, so does everyone else, and the housing market isn’t exactly ready for it.

The Post-Recession Years

Many young people responded to the financial crisis by not taking out any loans. Of course, this was partly because so few of them were available. But, the end result was the same. Young people could not get mortgages and were subsequently forced to rent. This created a huge renting culture in prime urban areas. But, these urban areas have reached a sort of apex. It is a point where the rent is not justified by the average income. These areas (i.e. Seattle, Austin, Chicago) have hit a respective peak.

The Peak

The peak has forced many millennials to reassess their choice to rent for the long-term. They are tuning to mortgages. Unfortunately, lenders have been tight for years. Well over half (and nearly two-thirds) of all first-time mortgages are backed by federal assistance through the Federal Housing Administration.

Another aspect of American culture predates millennials, but it is the millennials taking advantage of it regardless. The idea that a lawsuit could provide a serious opportunity to own a home or leverage a financial future is not a new one. Many millennials are receiving substantial settlements, and they are using their new income in a productive way- buying a home. When mortgage lenders are tightening up, it may have been their only real way towards prompt home ownership. The website at reality biz takes a rather sobering look at the young generation today.

The young generations are prepared to buy. It may be the lenders who are not fully prepared for the flow of people ready to go. They are restricting the loans and demanding federal backup. It could fundamentally change the landscape for young people looking to invest in a suburban future.