Eager Millennial Buyers Hampered by Affordability Pressures
August 7, 2018
Your most eager customers for homeownership are likely young adult renters at the moment, but reality bites as they try to shop for a home. Young millennial renters (those under the age of 29) are significantly more likely to want to buy a home in the next 12 months than older millennials or Generation X renters. However, affordability from rising home prices is proving a major barrier, according to a new study released by CoreLogic and RTI Research of Norwalk, Conn., on attitudes toward homeownership.
“One-third of millennial renters reported feeling they cannot afford a downpayment to buy a home,” says Frank Martell, president and CEO of CoreLogic. “With home prices rising quickly over the past few years and supplies low, first-time home buyers face ever-growing challenges to find and buy affordable entry-level homes. More needs to be done to help our first-time buyers join the homeownership class.”
Sixty-three percent of younger millennails who are not interested in homeownership cited the inability to afford a home or down payment as the chief reason why they hadn’t, versus 50 percent of older millennial renters and 52 percent of Generation X renters. Renters in the baby boomer generation say they aren’t interested in homeownership at the moment due to the stage they are at in their lives.
Updated: December 14, 2018