I’ll come right out and say it— I don’t want to buy a house.
I’m not against owning, I just don’t want to own a single-family detached house. That might be an unpopular opinion in the Midwest or outside of a big city. So why is that, might you ask?
Well, even though I’m one of the lucky ones not drowning in student debt, I still can’t afford to buy a “traditional” house. I crave to find a duplex, triplex, low-rise condo, townhome, or courtyard bungalow in Kansas City. But more affordable housing options are in the suburbs, far from the proximity to amenities, my favorite restaurants, and general walkability around town.
And I’m not the only one facing the challenge of finding a housing type that fits my budget and my lifestyle preferences.
This phenomenon plaguing the millennial generation is known as the Millennial Dilemma. It’s a term used to describe the challenges that young adults face in achieving financial stability and independence. Some of the specific challenges that have been associated with this dilemma include:
High levels of student debt: Many millennials have taken on significant amounts of student loan debt in order to finance their education, making it difficult for them to save money or invest in other financial assets.
High housing costs: Many millennials are also facing high housing costs, particularly in urban areas, which can make it difficult for them to afford to buy a home or even rent an apartment. The U.S. Department of Housing and Urban Development (HUD) defines cost-burdened families as those who spend more than 30 percent of pre-tax income on housing costs (including utilities). According to the 2021 American Community Survey, 47 percent of Kansas City renters were cost-burdened.
Stagnant wages: Many millennials are also facing stagnant wages, which can make it difficult for them to save money or keep up with rising costs of living. The rate of inflation and cost of living is outpacing wage growth.
Difficulty in finding secure jobs: With the rise of gig economy and the uncertainty of the job market, millennials have difficulty finding secure jobs with benefits and career growth opportunities.
Lack of retirement savings: With the high costs of living and the difficulty of saving money, many millennials are not able to save enough money for retirement and may be at risk of not having enough money to support themselves in their later years.
You might be reading this and thinking, “all of these apply to me and I’m not a millennial.” It’s true that some of the above challenges are not specific to millennials, but they are more pronounced with this generation. Millennials are facing these challenges in the context of a changing economy, a globalized world, and a rapidly changing technological landscape.
But millennials are proving to be a resilient generation, as we strive to make the best choices for ourselves and our families within the constraints forced upon us. My hope is that public officials, policymakers, private actors and millennials ourselves might imagine a different America, one more responsive to our needs. It’s up to all of us to build it.