INDIANAPOLIS — A new study shows that millennials are giving up on owning homes mostly in part because they don’t have savings for a down payment. 

A local real estate agent says there are programs out there that can help with down payments, and the myth of having to put 20 percent down has changed. 

According to a new study from ApartmentList.Com, with home prices and interest rates continuing to skyrocket, the number of millennials who say they expect to continue to rent instead of purchase a home has spiked from 15 percent in 2019 to now 22 percent in 2021. That’s largely due to affordability. 

The study also says that 66 percent of millennials who want to purchase a home don’t have any savings for a down payment, and only 2 percent have enough saved for the traditional 20 percent down. 

“Millennials are kind of in that prime home-buying years, right now. They are the largest generation, they’re buying the majority of homes. They are the ones really experiencing a lot of the highs and lows of the housing market over the last 15 years,” said ApartmentList.Com senior research associate Rob Warnock. 

Local realtor Tamika Patterson says there is help out there. While there are many horror stories of some houses having multiple offers and going for above-market prices, she says there are still offers getting accepted and you shouldn’t give up. 

“So, that’s definitely discouraging, but I would say keep trying because the thing is, you might say, ‘Oh, I’m going to keep renting, I’m going to keep renting.’ But you’re paying a mortgage already, it’s just not yours,” Patterson said. 

She says now they tell home buyers to try to save around 3 to 5 percent of the total cost for the down payment. There are lenders and programs that can help with that. 

Another issue people are facing is an increase of companies and investors swooping in with cash offers to buy houses to turn into rental properties. 

“Don’t be discouraged by that, I mean they are coming in, they are buying up those properties, but it’s still people out here accepting regular offers from regular families, just normal people,” said Patterson. 

“Cash is, unfortunately, kind of king sometimes, and those deals close out a lot faster, and you kind of know that it’s not going to fall through because it’s cash, but just kind of not be discouraged by that because everybody’s not accepting a cash offer, it’s not always the best.” 

If you’re interested in reviewing more of that study, click here.