Why Millennials Are Choosing Mortgage Over Marriage
The new Netflix show “Marriage or Mortgage” takes viewers through the process as millennial couples work with both a marriage coach and estate agent to decide what path to take, marriage or mortgage. While the concept might seem surprising at first, it is highlighting a very real dilemma that many younger generations face today. Whether to get married and/or have children, or purchase a home. While it may not be as dramatic as it is portrayed on the screen, the issue is a real one, and over the last few years, the priorities of some groups, like millennials, have shifted from having a marriage and family to owning a home and building wealth.
Buying a home is one of the first big life purchases that gives a person the feeling of being an adult. It represents their success, and can make them feel independent and responsible. Especially for those who have moved back in with their parents, or who put wedding plans on hold during the COVID-19 pandemic, a reevaluation of priorities may place owning a home above a costly wedding.
For many young professionals there may be a drive to do things differently than their parent’s generation. They may choose to invest it in a home, to build a foundation for themselves, and spend less on a wedding or wait to marry, or not marry at all. Data from the Pew Research Center shows that in 2019 only 44% of millennials were married, compared to 61% of Baby Boomers, and 53% of Gen Xers. The data also shows that people are getting married later, waiting until their late 20’s and early 30’s.
Along with changing viewpoints on marriage, millennial couples are purchasing homes together years before they plan to marry simply because it is more affordable than renting. Due to the high cost of living, sometimes it makes more financial sense to try and buy a home. This happens with couples and groups of friends, and is part of a method some people use to start investing in real estate called “house hacking.” They purchase a home, rent out parts to cover the mortgage, and then live rent-free while building up equity in the home. Millennials are also a little more likely to take risks with their money, in hopes of establishing long-term financial success, and may view paying rent as throwing their money away.
A booming real estate market with homes selling quickly for thousands and thousands of dollars over asking price is also driving younger generations to purchase a home and have a tangible investment to call their own. Financial advisors Michael Soroko and Zach Zenda founded the Emeritus Wealth Group because they understand how millennials and younger generations think and feel, and they built their practice on the idea of being a different kind of financial advisor. As they say, they “are not your mommy and daddy’s financial advisors” and they work with clients across the country to develop and apply actionable financial plans and goals for their specific situations and needs. Get in touch with this energetic and innovative duo through the Emeritus Wealth Group website and see how they can help make buying a home, and long-term financial success a reality for you.