Young adult home buyers aren’t afraid to buy a home in need of some major TLC. Sixty-seven percent of millennial home shoppers who participated in a recent Clever Real Estate survey of 1,000 U.S. residents in the market for a home said they would put in an offer on a property in need of major repairs. See: https://listwithclever.com/real-estate-blog/millennial-home-buyer-report/
Millennial home buyers are taking a long-term view when buying, the Clever Real Estate survey found. They also tend to value safe neighborhoods and good schools over walkability and short commutes.
Young adults also tend to have a fondness for real estate. Eighty-four percent of millennials believe that buying a home remains a core component of the American dream, according to the survey. Furthermore, a 2018 survey from Bank of America found that most millennials prioritize homeownership (72%) over other major life events, like getting married (50%) and having children (44%).
The chief reasons cited by millennials want to buy a home are that they need more space, they feel owning is more affordable than renting, and they believe owning a home is a good investment, the Clever Real Estate survey found.
The number one barrier to buying is coming up with the down payment, the survey found. This is followed by qualifying for a mortgage and high home prices.
“This is where millennial-centric issues like student debt and rising rent prices really factor into the equation,” Clever Real Estate notes in its study. “While Gen Y-ers are, on the whole, earning more than previous generations did at their age, millennial-specific issues like higher costs of living and poor credit are making it difficult for them to break into the market.”
“Copyright National Association of REALTORS®. Reprinted with permission.”