MILLENNIALS HAVEN’T WRITTEN OFF HOMEOWNERSHIP

REAL ESTATE TRENDS

Source: C.A.R.

Contrary to popular belief, millennials still highly value homeownership, and a majority expects to buy a home in the next five years, according to a CALIFORNIA ASSOCIATION OF REALTORS® (C.A.R.) survey of young adults age 18-34. C.A.R. President Kevin Brown commented, “Despite recent news reports of young adults moving back home to live with Mom and Dad, millennials haven’t completely written off home buying and still aspire to owning a home.”

Making sense of the story

• The survey found that of the millennial renters, the majority (67 percent) rent because they can’t afford to purchase a home.

• More than half (54 percent) gave homeownership an importance rating of “8” or higher on a scale of 1-10, with 1 being “not at all important” and 10 being “extremely important.”

• Millennials are optimistic about future home prices, with 59 percent saying they expect home prices will increase in a year, and 63 percent believing home prices will be higher in five years.

• Of those currently renting, more than one-third (36 percent) would be motivated by affordable home prices to buy now.  Sixteen percent claimed they would be motivated by having the down-payment required to purchase, and 15 percent by an improvement in their finances.

• One in two millennial renters has student debt, but most don’t feel it is preventing them from qualifying for a mortgage.  Additionally, more than four in 10 (43 percent) don’t have debt that would prevent them from buying a home.

• Even though many millennials saw their parents struggle through the recession, more than half (59 percent) said the housing crisis didn’t affect their attitude toward homeownership being a good investment.

• While they aspire toward homeownership, the majority was uncertain or doubtful they could obtain a mortgage now, with 45 percent saying they were not sure, and 33 percent saying they would not be able to obtain a mortgage now.

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