Millennials, those adults between 18 and 29-years old as of 2013, are set to play a big role in the overall economy and housing market. Despite what has been reported about this generation, they’re not all living in mom and dad’s basement and refusing to participate in the ‘ownership society’. According to a recent survey of more than 1,000 Millennial households, more than 8 in 10 Millennials want to own a home and plan to purchase one in the future.
While the recent Great Recession had a big impact on Millennials, forcing many who couldn’t find a decent job to move in with their parents, this trend should decline as the economy improves. Fully 75 percent believe that home-ownership is an important long-term goal. Over the next five years, Millennials are projected to form 8.3 million new households, and spend $1.6 trillion on home purchases.
Conventional wisdom says that Millennials don’t want to own cars and prefer an urban lifestyle. However, this survey from the Demand Institute reaches a different conclusion. When Millennials do rent or purchase their next home, they are seeking more space, not less. A single-family home is their ideal, though demand for multi-family housing is expected to remain strong for several more years.
Here are some other interesting results from this survey:
- There were 13.3 million U.S. households in 2013 that were headed by Millennials. This number is estimated to increase to 21.6 million by the year 2018.
- Over 70 percent of Millennials wish to move to obtain a better home or apartment; 59 percent want more privacy; 50 percent are planning to establish their own household; and 48 percent want to own or rent their own place.
- While most Millennials are single, within the next five years, 64 percent expect to get married; and 55 percent expect to start their own family in the next five years.
- 73 percent of Millennials believe that home ownership represents an excellent personal investment.
Are you a Millennial who’s ready to pursue home ownership? We can help you find an ideal starting home.