According to a new report from Apartment List, only 13 percent of millennial renters across the U.S. are on pace to afford a 20 percent down payment on a home in the next five years.
With almost half of millennial renters having no down payment savings, 12.3 percent expect to rent forever. In some metros, like San Francisco or San Jose, nearly a fifth of renters expect to rent forever.
Among the metros surveyed, Dallas had one of the lowest percentiles with only 7.1 percent expecting to rent indefinitely. However, only 14 percent of millennial renters in Dallas are on track to afford a down payment on a median-priced home within the next five years.
To see how major metros stack up across the country, click here.
Of the over 10,000 responses this past year, there was a rise in those who plan to rent indefinitely.
The reasoning for this is multifaceted. According to the responses, student loan debt, lack of family support and lack of affordability on the market were the most prevalent barriers.
While some renters might be fond of the renting lifestyle, Apartment List found that the biggest factor causing millennials not to buy a home is the lack of affordability within the market. Among those wanting to buy a home, 70 percent cite the lack of affordability as the reason they are still renting.
For those expecting to rent forever, 69 percent don’t believe they can ever afford to buy a home.
Apartment List sourced the data by conducting a survey asking millennials about their housing goals.