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.
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.”
Source: “2019 Millennial Home Buyer Report,” Clever Real Estate (2019)
