However, there are various reasons why millennials should buy a home. Here are a few benefits millennials will enjoy after becoming homeowners:

The opportunity to build appreciation and equity. There aren't many wealthy people who don't own a home. They know that in the long run homeownership leads to appreciation and equity, the biggest benefit of purchasing a house. Living in the U.S. allows millennials – and anyone else – to use homeownership as a surefire way to build equity over time, and if it's done right, they will end up with an asset that can be used for almost anything.

Mortgage interest deduction. Owning a home comes with tax deductions, which is something everyone typically wants. While millennials should talk to their CPAs to figure out the details, the short explanation is that homeownership allows individuals to write off the interest portion of their mortgage payment. Homeowners can choose to keep their W4 allowances with their employer the same and possibly get refunded back at the end of the year. A CPA or tax professional can clearly map out all the "what if" scenarios and what a millennial's tax return could look like. However, the first step is to become a homeowner. Then millennials will be able to enjoy the interest deductions that follow.

Exemption on capital gains. If millennials are observant, they'll notice how some people buy a home in an affordable area and then, years later, sell that home and purchase one in a wealthier area and continue to upgrade from there. It's easy to think this person got a pay raise or did something spectacular to acquire more money, but more often than not, that's not the case.

Instead, these homeowners are seeing capital gain exemption from selling their primary residence. For example, say a millennial buys a house for $500,000 and holds onto it for a few years until it appreciates to $1 million dollars. If that millennial sells their house and there aren't any realtor or other fees, then he'll get around $500,000. Normally, that's capital gain income, and the millennial would have to pay a big chunk in taxes to the government. But as a homeowner who is selling their primary residence, that gain is exempt from capital gains tax. The $500,000 is all theirs.

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Why Millennials Should Embrace Homeownership Despite Student Loan Debt

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