April 2nd, 2013
Most members of the millennial generation have opted to rent rather than own a home, but new data shows this trend is likely to change in the future.
A new report from the PulteGroup found that millennials – those between ages 18 and 34 – are expressing a greater interest in owning a home. Approximately 65 percent of millennials with annual incomes over $50,000 said their intention to purchase a house has increased either somewhat or significantly from last year. More than 50 percent of this demographic said they view homeownership as an investment and said their primary motivation in taking on a mortgage is to build equity and own an asset.
“Millennials have witnessed the housing boom and bust, but still believe home ownership is a good investment,” said Fred Ehle, vice president for PulteGroup. “Consistent with other third-party research that shows more than 90 percent of millennials plan to buy a home someday, we see a lot of young adults who are making financial sacrifices to afford a place of their own. With the combination of incredibly low mortgage rates, rising rental rates, and very low inventory levels, millennials realize now is a good time to purchase a home.”
Research shows that millennials strive to educate themselves on the home buying process, and frequently rely on the internet, a mortgage consultant and their relatives for guidance on purchasing property.