While the millennial homeownership rate still significantly lags that of previous generations at a similar age, a new study by AparmentList showed that almost 90% would prefer to own than rent.
However, just 4.4% of them plan do so in the next year. But just a little further out, the numbers get quite encouraging for those wishing to do some “Adulting”. 15% more plan purchase in 1-2 years and then add another 15% on top of that for plans to purchase 2 to 3 years from now. That puts those planning to purchase a home in 1 to 3 years at 34.4% which is a large number of future homeowners hitting the market. Now, add in another 25% for those that say that they plan to purchase in 3-5 years and now the total in the 1 to 5 year time horizon jumps to 59.4%. But wait there’s more….30% said that they would purchase a home in 5 years or more from now.
Among those millennial renters who plan to eventually purchase a home, 71.5 percent cite affordability as a reason that they have yet to do so. Specifically, we find that saving a down payment is the primary financial obstacle keeping millennial renters from purchasing homes, with 61.7 percent of respondents who plan to buy saying that they canYt afford a down payment (maybe they are simply unaware of many low to no downpayment mortgages). Meanwhile, just 29.1 percent say that they canYt afford a monthly mortgage payment.