Most millennials still believe in the American Dream of homeownership—77 percent want to someday own a home, according to the latest ValueInsured Modern Homebuyer Survey. However, those hopes and dreams sometimes face an uphill climb when it comes to the challenges of the modern housing market. ValueInsured’s latest survey provides some insights into where millennial homebuyers are compromising when it comes to purchasing a home—and why.
As ValueInsured points out, millennial homebuying isn’t matching that generation’s aspirations in 2018, either in terms of homeownership rates or the homes they’re purchasing. While nearly 80 percent of millennials report being interested in homeownership, the actual U.S. millennial homeownership rate is only 35.3 percent—"the lowest level since the U.S. Census began tracking homeownership by age groups in 1982."
How many millennials report having to compromise their housing wish lists when it comes time to buy? Eighty-five percent, according to ValueInsured’s survey, as compared to only 56 percent of homeowners in all other age groups. For baby boomers, the number is 34 percent, well under half the millennial rate.
So, what form are those compromises coming in? Forty-one percent of surveyed millennial homebuyers report having to settle for a smaller home than they wanted in order to stick within their budget. Given the continued increase of home prices in many markets, that’s not surprising. Forty percent report having to expand their search for a home beyond their target location, and 41 percent report having to sacrifice some desired features in order to make the buy, including air conditioning, fireplaces, or flooring options. Thirty-nine percent said their new homes came with less accompanying land than they would have liked.
There are definitely some instances of buyer’s remorse in the mix, to one degree or another. Of those surveyed, 37 percent said they didn’t like the style of home they eventually settled on. Eighty percent of those surveyed reported planning to move again within five years. A full 52 percent planned to move again within three.
To read ValueInsured’s full breakdown of millennial homebuyer trends, click here.