Millennials still have faith in the traditional “American Dream”! This was indicated by the most recent report by ValueInsured Modern Homebuyer Survey which shows 77% of the millennials still hoping to someday own a home. These desires however confront an uphill battle with regards to the difficulties of the modern housing market. ValueInsured showed some insights into where millennial homebuyers are haggling with regards to obtaining a home—and why.
According to the survey, millennial homebuying is far from meeting the aspirations of the generation this year in terms of rates or the homes they want to buy. Even with 80% of millennials expressing interest in owning a home, US millennial homeownership rate has dropped to its lowest level of 35.3% since US statistics started following homeownership by age groups in 1982.
The percentage of Millennials having to compromise their housing wish lists:
- 85% reported having to settle to a home they have not dreamed of, compared to only 56% percent of homeowners in all other age groups
- 34% for baby boomers (well under half the millennial rate)
In what form are those compromises coming in?
- 41% settled for a smaller home than they wanted in order to stick within their budget
- 40% expanded their search for a home beyond their target location
- 41% sacrificed some desired features in order to make the buy which includes air conditioning, fireplaces, or flooring options
- 93% said their new homes came with less accompanying land than they would have liked
- 37% didn’t like the style of home they eventually settled on
- 80% reported planning to move again within five years
- A full 52% planned to move again within three