WASHINGTON – June 12, 2019 – Tired of squandering more than $2,500 a month on rent in downtown Washington, D.C., Tyler Hanson, 30, finally decided to buy a place for herself and her 4-year-old daughter.
But she had a non-negotiable rule: One of her biweekly paychecks had to cover all her fixed monthly bills, including mortgage, utilities and student loan payment. It took Hanson about 18 months to find a $340,000 row house that met her benchmark, and it was far from her preferred neighborhood.
But Hanson has no regrets that she stuck to her guns even though she was qualified by her lender for a home costing up to $430,000.
“This is the largest purchase I’ve ever made,” says Hanson, a lobbyist. “I want to make sure I’m very comfortable financially.”
Millennials have been driving home sales the past few years, but they’re doing so cautiously. About 76% of 22- to 38-year-old recent homebuyers spent less than 30% of their monthly income on housing costs in 2017, the latest data available show. That’s up from 69% in 2000 and 65% in 2009, according to Census Bureau figures.
Source: Copyright 2019, USATODAY.com, USA TODAY, Paul Davidson