Many in older generations may be wondering how long the Millennials are planning to live in their parents basements. Well, the news is good. The Millennials are about to hit the real estate market in a big way.
Based on a report released by The Demand Institute, Millennials and Their Homes: Still Seeking the American Dream:
Posted in Did You Know, by Jessica Lautz, Director, Member and Consumer Survey Research on September 16, 2014
- In the next five years, 8.3 million new millennial (Gen Y) households will form. It is predicted that millennials will spend $1.6 trillion on home purchases and $600 billion on rent.
- The generation is optimistic: 79% expect their financial situation to improve and 74% expect to move within the next five years.
- Gen Y wants to own. Similar to other survey findings, 75% believe home ownership is an important long-term goal and 73% believe ownership is an excellent investment. 24% already own their home and an additional 60% plan to buy a home in the future.
- Looking forward: when they move, they will want more space and they will move to the suburbs to start families.
- 88% own a car, and they are open to moving locations where grocery stores, restaurants, and retail is within a short drive vs walking distance.
- 44% do think it would be difficult to qualify for a mortgage, and 69% would consider lease-to-own approaches to home buying.
- The data is based on a survey of more than 1,000 millennial households (ages 18 to 29).
Click on the link below for the full report: