The millennial generation has been slow to embrace home ownership, but their entrance into the housing market may be coming closer than you may think, according to a new survey conducted by Choice Home Warranty of about 1,000 millennials.
“For millennials especially, growing up during the housing crisis and recession have shaped their outlook on the future of home ownership,” according to the survey. “While there have been many reports on the decline of millennials owning property, we sought out to ask them when exactly they see themselves buying their first home.”
About 30 percent of millennials plan to purchase a home within five years, the survey finds. Broken down by age, 25 percent of 18 to 24 year olds say they would buy within five years, while only 10 percent of 25 to 34 year olds say they plan to buy within five years.
Buying a home may be more appealing to women, according to the survey. Women are more likely to plan for home ownership in the future than men. Nearly twice as many millennial women plan to buy a home within the next six to 10 years compared to men.
A recent report from the National Association of REALTORS® has shown that millennials have already broken out into the housing market in a big way. Indeed, the largest group of recent home buyers are from those who were 34 and younger, according to the 2015 NAR Home Buyer and Seller Generational Trends study. In 2014, buyers who were 34 and younger comprised 32 percent of the market share, while 27 percent of the market share were 35 to 49 years old. Millennial buyers represented more than double the amount of Baby Boomer buyers, according to the report.
Still, millennials have faced several barriers to home ownership that have prevented their numbers from being higher in the market.
“Many millennials have endured underemployment and subpar wage growth, and rising rents, and repaying student debt have made it very difficult to save for a downpayment,” Lawrence Yun, NAR’s chief economist, said about the results of the NAR generational survey. “For some, even forming households of their own has been a challenge.”
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Info courtesy of: DAILY REAL ESTATE NEWS