According to a survey conducted by the California Association of Realtors, millennials still value homeownership but claim that it may take a while before they purchase a home.
Out of all the 1000 millennials aged 18 to 24 years who were part of the 2014 California Millennial Survey, 54 percent gave the importance of homeownership a rating of 8 or higher on a scale of 1 to 10 while 50 percent claim that they’re planning to buy a home within the next five years. Furthermore, privacy, freedom with to do whatever they want with their property as well as homeownership satisfaction are the three biggest advantages they see when you own a home.
“Millennials do see homeownership as an important objective,” President of the Silicon Valley Association of Realtors David Tonna said. “They may delay it for a few years, but it’s a fact of life that most of the young adults today will settle down and have families and will want a home of their own.”
Additionally, about 59 percent of the respondents claim that the housing crisis didn’t change their outlook on homeownership as an excellent investment. The same number also expect home prices to increase within a year while 63 percent think that it’ll be higher in 5 years.
Out of all the millennial renters, 76 percent claim that they still couldn’t afford to purchase a home at this time mainly because of financial issues. Student debt didn’t seemed to be a obstacle to homeownership since one of out two millennial renters claim that it didn’t prevented them from getting home loan.
If homes prices become affordable now, 36 percent of the respondents claim that they’ll be encouraged to purchase a home, 16 percent said they’d be motivated once they have the required down payment while 15 percent claim an improvement in their current financial situation will push them to homeownership.
Lastly, most of the millennials in the survey that rather than purchasing homes in urban areas, they prefer single-family homes on large lots located in the suburbs. Two out of three of the respondents are planning to buy a single-family detached house while 12 percent want a townhouse or condominium.