77% of Millennials say rent is too high to save for a home

(August 22, 2024) The transition from renting to buying is big, especially for Millennials. Despite 75% of Millennials wanting to buy rather than rent, 3 in 4 can’t afford a down payment. That’s a 38% decrease from 2021 when 83% of millennials reported actively saving for a home purchase. But more than half (51%) are actively saving, despite financial hardships and a lack of basic home-buying knowledge.

• 77% say rent is too high to save for a home
• 74% have debt inhibiting their savings: 54% credit card, 40% student loans, 26% auto loans, 16% medical debt
• 48% can’t afford something nice enough to want to buy

Even if they had the money right now, 58% don’t feel prepared to buy a home. Many Millennials can’t calculate or are unfamiliar with basic mortgage math. Of those surveyed, 2 in 5 overestimated their buying potential, and many dramatically underestimated the financial toll interest will have on their home’s cost over 30 years.

Check out the full study here, which further breaks down Millennials’ homeownership preparedness and savviness.