Millennials are becoming first-time homebuyers in unconventional ways
Micromortgages may be onto something

For first-time homeowners and friends of homeowners, it’s probably startling to see how much the monthly mortgage expenses are versus rent. For example, in Illinois’ Cook County, the average one-bedroom is $1,161. Meanwhile, my mortgage monthly costs are under $700 — and I gasped in 2020 when it hit $704.32. For renters, it may seem illogical for mortgage companies to turn them down for homeownership when they’re paying almost twice the amount (depending on location) each month, and that’s not including utilities, credit bills, living expenses, student loans, etc.
ADVERTISEMENT ~ Amazon
As an Amazon affiliate, I earn a percentage from purchases with my referral links. I know some consumers are choosing to boycott Amazon for its DEI removal. However, after thinking about this thoroughly, I want to continue promoting cool products from small businesses, women-owned businesses and (specifically) Black-owned businesses who still feature their items on Amazon. As of the first date of Black History Month 2025, each new post will ALWAYS include a MINIMUM of one product sold by a Black-owned business. (I have visited the seller’s official site to verify that Amazon Black-owned logo.) I am (slowly) doing this with older, popular posts too. If you still choose to boycott, I 100% respect that decision.

From a mortgage company’s perspective, they want to have a safe bet (if you exclude the Housing Crisis of 2008 with predatory mortgage lenders) and know that this first-time homeowner can afford a six-digit piece of real estate. While rent may be expensive, the tenant can choose to leave a year or two later. Or, if the lease is a month-to-month agreement, even sooner. With homeownership, that person is in it for the long haul. And mortgage companies do not care that your roommate didn’t contribute that month; they want their money.
ADVERTISEMENT ~ Amazon
(As an Amazon Affiliate, I earn a percentage for every purchase with my referral links.)
But first-time homebuyers are growing older and want more stability, and they are finding unconventional ways to become homeowners. Millennials are testing out the waters with vacation homes. Other first-time homebuyers are seeing if a micromortgage is a good idea — although there are two drawbacks: location and interest rates. And others are riding the 2022 wave of house-buying popularity.