Coleen Wallace: Millennials Navigate Homeownership Challenges Amid Rising Costs
By: Cloud Realty
In today’s economic landscape, millennials find themselves at a unique crossroads: the dream of owning a home is alive, but the hurdles are undeniable. Coleen Wallace, a seasoned real estate expert, says that the struggle for millennials goes beyond home prices. Inflation has affected everything from gas to groceries, cutting into potential savings for down payments. Additionally, higher interest rates are making mortgages more costly, while property taxes and insurance premiums continue to surge across the U.S., especially in hurricane-affected regions in the South.
Despite the barriers, Wallace believes there’s a path forward—though it demands focus and strategy. “If millennials want to settle in high-demand urban areas, they have to be ruthless with budgeting,” she explains. “Setting realistic financial goals and finding ways to save on non-essentials can make all the difference.” For those open to moving a bit outside the city, there are additional opportunities, including the chance to negotiate with sellers for concessions on closing costs or lower interest rates.
Homebuilders are also stepping in to help, offering incentives for first-time buyers. Wallace points to national companies that provide affordable homes paired with preferred lender deals, offering lower rates and sometimes even reduced insurance costs. New builds also come with energy-efficient designs, a win-win for eco-conscious millennials.
When working with millennial buyers, Wallace notices a shift: these buyers are less interested in DIY renovations than previous generations. “Millennials have busy careers, often with both partners working, and they’re looking for move-in-ready homes,” she says. To help her clients, she advises sellers to make updates like new paint and flooring. Adding technology such as smart thermostats or Ring doorbells can also boost appeal. For the environmentally-minded, Wallace recommends energy-efficient upgrades, noting that a few hundred dollars spent on insulation or an energy audit can make a home far more appealing.
Wallace also suggests that millennials adopt small, practical savings habits—cooking meals at home, canceling unneeded subscriptions, and cutting back on extras like coffee shop lattes. “Saving even $500 a month can go a long way when you’re preparing for a down payment,” she advises. Another strategy she recommends is “house hacking”: buying a property with extra bedrooms and renting them out to cover part of the mortgage. “It’s a clever way to build equity faster, and in a few years, they could potentially convert it into an income property.”
With the added strain of rent, Wallace believes millennials can benefit from the stability and investment potential of homeownership. “Renting means paying someone else’s mortgage,” she says. “Owning allows you to customize your home, borrow against it, and build real financial security over time.”
For millennials aiming to go green, Wallace offers practical tips for energy-efficient living that won’t break the bank. She suggests focusing on high-impact improvements like energy-efficient appliances and sustainable materials, such as reclaimed wood. Government rebates and tax incentives can further support these changes, making it easier to create a sustainable home on a budget.
Wallace also encourages millennials to leverage tech for homebuying, from Google Earth for exploring neighborhoods to real estate apps for virtual tours. “Technology can make the research process faster and easier, allowing them to evaluate a property’s neighborhood, nearby amenities, and safety—all before stepping inside.”
As Wallace sees it, millennials might be looking at smaller homes, but their approach is smarter. “This generation values technology, convenience, and sustainability,” she says. “With the right planning, they’re proving that homeownership is still within reach, even in a challenging market.”
Published by Iris S.
