Millennials

Do Millennials still value homeownership?

Do Millennials still value homeownership?

A new year gives us new innovation and changes to look forward to. In the original Blade Runner, it was imagined that we would all be driving flying cars and living among robotic “replicants” by now. We’re not quite there yet; however, lots have changed since 1982 when the movie was first released. Coincidentally, 1982 was also the year when the U.S. Census Bureau began tracking homeownership rate by age group, when homeownership among adults under age 35 was 41%. Today, that figure has declined to 36.8%.

The ValueInsured Modern Homebuyer Survey does not go quite as far back as 1982, though it has been tracking Americans’ desire to own a home quarterly for over two years. According to the survey, the desire to own the American Dream among millennials (who are not already homeowners) remains high, currently at 71%. It has, however, been trending down…

Do homebuyers expect help from Mom or Dad?

Do homebuyers expect help from Mom or Dad?

Is it fair to call the millennial generation one of the least independent generations we have had? We may get some pushback for suggesting that, but speaking strictly about housing arrangement, that categorization is not exactly inaccurate.

Demographic and living arrangement research from the Pew Center suggests the incidents of young adults 18-34 living at home with parents are the highest in 130 years (!). There are also recent evidence that when young adults leave home to set up their own nest, they often do so with the financial help of mom and dad.  

In a latest Q4 2018 survey by ValueInsured, millennial homebuyers who plan to buy a home “in the near future” were asked if they expect financial help from their parents and/or their in-laws to fund the down payment, typically the largest financial prerequisite and barrier to owning a home. Overall, 56% of all millennial expectant buyers reported they do not expect financial help, while over 4 in 10 millennial buyers (44%) said they do.  

WIO – the new trend in home buying

WIO – the new trend in home buying

You may have heard the term “crying it out” or “CIO”; if you haven’t, your Gen-X and millennial clients with young families most certainly have. But we’re not here to discuss parenting or sleep-training tips. There is a new trend in housing: increasing number of millennial and Gen-X homebuyers are now “waiting it out”.

CNBC: Record low numbers of millennials think buying a home is a good investment—here's why

CNBC: Record low numbers of millennials think buying a home is a good investment—here's why

America's attitude towards home-ownership is changing. Only 48 percent of millennials (age 21-36) believe that buying a home is a good investment, according to the latest ValueInsured Modern Homebuyer Survey. That's a record low, according to the report, and a sharp contrast to the previous high of 77 percent just two years ago.

Millennial homeowners and the starter-home drought

Millennial homeowners and the starter-home drought

In ValueInsured’s latest Modern Homebuyer Survey, millennial homeowners reported concerns for housing overvaluation, and rising pessimism for home price futures. One would expect millennial homeowners – being in the enviable position of owning in this seller’s market – to rejoice at rising home prices, but their reported sentiments tell an opposite story. Any rise in their home equity wealth on paper is negated by their concern for a pending correction, and the worries that they could be “buying high” if they were to upgrade now. The result? inventory shortage particularly for starter homes.

Consumer Affairs: Federal Reserve reports consumers taking on more debt

Consumer Affairs: Federal Reserve reports consumers taking on more debt

"Wealth in 2016 of the median family headed by someone born in the 1980s remained 34 percent below the level we predicted based on the experience of earlier generations at the same age," the authors write. "The corresponding shortfalls of the 1960s cohort (–11 percent as of 2016) and the 1970s cohort (–18 percent) are worrying but are much smaller than their respective 2010 and 2013 shortfalls."

The study found that the typical millennial family lost ground between 2010 and 2016, falling even further behind the typical wealth life cycle. The authors say this represents a missed opportunity because asset appreciation is unlikely to be as rapid in the near future as it was during the recent period.

Perhaps because of this trend, millennials’ view of buying a home has turned negative, according to a survey by ValueInsured. In the third quarter of this year, only 48 percent of all millennials said buying a home in America today is a good investment, a record low.

That's down from 54 percent in the second quarter. The previous high was 77 percent two years ago.

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Millennials’ View of Home Buying Turns Negative

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Millennials’ View of Home Buying Turns Negative

Millennials’ housing confidence and enthusiasm plummet to record low in latest ValueInsured Modern Homebuyer Survey

​​​​​​​DALLAS, August 15, 2018 – Millennials’ perceived value in buying a home dropped below 50 percent, down significantly from post-Brexit high, according to the latest ValueInsured quarterly Modern Homebuyer Survey

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