When people share their opinions on millennials, they tend to fixate on the distances between our values and actions and those of the previous generation. However, now we have a small piece of proof that we’re not so different when it comes to our residential aspirations.
Numbers don’t lie
In the National Association of Realtors’ annual Housing Opportunities and Market Experience (HOME) Survey, we can see that, contrary to some belief, millennials still feel positively about owning a house.
96 percent of surveyors under age 34 would want to buy a home in the future.
Eventually they move out of mom and dad’s
That’s a big deal, because 35 percent of homebuyers are millennial, and the number will only increase over time. According to a MarketWatch report, the millennial population bulges around age 24 and 25, only a year or two before the age where many millennials begin to marry.
That means that the “arrested development” generation is poised to reach a time where they move out of their parent’s basement and into their own place. The data from the report shows that too. According to those surveyed, 40 percent of non-homeowners don’t plan to buy before they marry, begin to have a family, or change jobs.
Though it might take a bit longer..
As you might expect, the other 57 percent of millennials who haven’t bought yet can’t afford to buy. Rising rent costs and student loan debt stagnate savings, making it harder to cobble together a down payment. Housing price increases across the board, but especially in cities that are hotbeds for job growth, certainly don’t help the matter.
In spite of all this, millennials still feel great about owning a home. As this demographic overcomes the obstacles in front of them, it appears they will have their eye on owning their own home. The age at which that happens may end up being a bit higher than usual.
The American dream
You can see more of that positive attitude in the reasons why millennials want to own. According to the HOME survey, 85 percent believe buying a home is a good deal, and 88 percent believe that homeownership is part of their American dream.
That disparity is curious, no? It seems to indicate how much social and emotional weight people still put into houses. When you break this sentiment out by region, you see even greater disparities. In the South, 91 percent view homeownership as a part of their American dream, while only 85 percent say it is a good financial decision.
It’s not surprising to see that in the Northeast, where real estate prices run high, only 84 percent of those surveyed thought owning a home is financially prudent. However, in the West, where home prices are currently skyrocketing, we see the highest percentage of millennials who see homeownership as a prudent financial decision. While the startup cost may be high, buyers can be almost certain of a return on investment. This attitude is bolstered by the cultural glamorization of the house-flipping business. Now, more than ever, millennials have reason to see a home as a piece of a retirement or investment strategy.