There’s a longstanding belief that millennials, people who reached adulthood around the 2000, have no interest in owning a home. This idea has been widely written about, to the point that many have written millennials off as the “rental generation.” But is it true? Information collected by the California Association of Realtors suggests that millennial homebuyership will grow over the next five years.
The C.A.R recently performed a survey of young adults age 18-34, and the results are eye-opening to say the least. Of those surveyed, 54% (over half) rated homeownership an 8 or higher on a 1-10 scale of importance.
Millennials are also optimistic about future home prices, with 59% saying they expect home prices to increase in a year. 63% believed they will raise over the next 5 years.
C.A.R. President Kevin Brown is optimistic about the findings of the survey. “Despite recent news reports of young adults moving back home to live with Mom and Dad, millennials haven’t completely written off homebuying and still aspire to owning a home,” said Brown. “What’s encouraging is that while many saw their parents or friends struggle through the housing crisis, the majority haven’t changed their attitude toward homeownership. Young buyers may have to delay their home purchase, but they eventually hope to own their own home.”
The survey also returned some other interesting results:
- Of those currently renting, 36% would be motivated to buy by affordable home prices
- 67% rent because they can’t afford to purchase a home, not because they have no interest
- 2 out of 3 (67%) indicated that they plan to buy a single-family detached home rather than a condominium
To read the full survey results, visit the California Association of Realtors website.