More millennials are struggling to afford homes than ever before

Local News

More millennials are struggling to afford homes than ever before.

The average millennial will spend more than $200,000 on rent before buying a house, according to Business Insider.

And with new apartments being built across the city, the cost of rent is only increasing as more people move to the area. 

Leasing signs can be seen plastered to new high rises across the Columbus area.

“It’s pretty expensive especially around here,” renter, Kathryn Hoots said.

Hoots moved into an apartment in the Short North and said because of the price of rent, it is difficult to put aside savings for a house.

“I’m 24 so being younger in your 20s it’s really hard with your salary to work on savings,” Hoots said.

A recent study from apartmentlist.com states that nearly half of U.S. millennials who want to buy homes have no savings for a down payment.

“That’s why a lot of us are renting right now,” renter, Max Lee said.

The average price for a home in Columbus goes for around $146,000 and rent averages $1,200, according to Trulia.com.

However, new apartments in places like Downtown and Short North are costing renters even more.

“It’s insane. It’s $1500 for a single. It’s a lot,” renter, Miranda Kibler said.

Economist Bill LaFayette said there are more and more millennials who are renting than buying. Some by choice, others because they have to.

“It’s rent. It’s student debt. It’s all these obligations that people have at a much earlier age than they used to have,” LaFayette said.

He attributes the higher price of rent to supply and demand.

“We have more people than we are developing housing,” LaFayette said.

And as more people move to the city, he said it will only get worse. 

“I think it’s going to get worse until we break this jam of inadequate number of housing units,” LaFayette
 said.

  

Copyright 2019 Nexstar Broadcasting, Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.

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