Millennial Home Buyers’ Priorities
A recent survey of 503 Millennials (people ages 25 to 34 including 203 current homeowners and 300 individuals who plan to buy a house within 12 months) reveals that Millennial home buyers are interested in maximizing space and affordability while maintaining a level of community found in urban environments, and capitalizing on opportunities to customize and personalize their homes.
More than half of survey respondents (53%) are eager for a suburban lifestyle, and millennials are four times more likely to opt for more space over living in a populated community. However, urban benefits of being within walking distance to parks, grocery stores, schools, and work were high priorities for respondents.
Millennials named “desire to have outdoor space” the most important reason to purchase a home – more important than both financial and emotional readiness for homeownership.
Millennial homeowners are mostly focusing on purchasing a home as their primary residence. But millennials are a demographic that’s dealing with more diverse living situations than previous generations. While many millennials will choose to start families, we also know from Census data that single-adult households are on the rise. Meanwhile, millennials’ retiring parents could add another twist to the question of household composition—especially if those grandchildren come along. So, millennials are looking for flexible living spaces, and 71% say the ability to customize a new home is somewhat or very important. Nearly 4 out of 5 respondents (78%) said a children’s play space was important or a must-have in their home design, and 74% said the same when asked about having a separate living suite. Other flex spaces, including finished basements and office areas, also ranked high in importance, but more respondents were willing to compromise on those spaces.
A full 75% of respondents said they’re looking to purchase a home because they’re tired of renting, and 84% said they feel “financially ready” to purchase a home. The same amount said they’re interesting building personal financial equity through a home purchase. In order to achieve the level of flexibility and location amenities they’re looking for, millennial home buyers plan to spend about a fifth of their budgets on renovations and customizations.
Are you a Millennial considering buying a house? What are your priorities?