Millennial Buyers Reach Tipping Point in 2018?
July 28, 2015
Millennial home ownership levels may still be low for now, but that is expected to change in three years.
Fifty-three percent of nearly 6,000 millennial renters, age 18 to 34, recently surveyed say they expect to buy a home but plan to wait until after 2018, according to Apartment List's Apartment List Renter Confidence Survey. Only 25 percent of those surveyed say they expect to buy a home in the next two years.
Read more: Millennials Are Saving for Home Ownership
Age and marital status will play a big role on when they jump into home ownership, the survey found. Older millennials, those age 25 to 34, say they plan to buy sooner than younger millennials, age 18 to 24: 54 percent of older millennials plan to buy within the next three years compared to only 37 percent of younger millennials.
What's more, 52 percent of married millennials plan to buy within the next three years compared to 41 percent of unmarried millennials.
Also, millennials earning between $30,000 and $60,000 plan to buy at a 15 percent higher rate than those making less than $30,000, and those making over $60,000 have a 25 percent higher rate, the survey shows.
"Millennials are projected to be larger than the boomer generation this year, and currently only 34.6 percent of Americans under age 35 are home owners," says Andrew Woo, data scientist at Apartment List. "While millennial home ownership rates are low today, our study found that nearly 3 out of 4 millennial renters (74%) plan to buy a home in the future. … The future housing decisions of millennials will have a major impact on the economy."
Source: "Study: Most Millennials Plan to Purchase Homes, But Only After 2018," Apartment List (July 22, 2015)
Updated: October 29, 2020