News & Opinions
The latest news and insights from Hanley Wood’s outspoken experts and key thought-leaders throughout the residential and commercial design and construction industry.
Ready to Buy
Jean Dimeo / BUILDER / June 14, 2013
Despite witnessing housing’s boom and bust, millennials still see home ownership as a good investment.
If all the national surveys I read are on target, my 18-year-old college-bound twin sons will eventually move out of my house after all. Demographic experts say my kids are a lot more like their grandparents than mom and dad in terms of their spending habits and that they embrace thrift. This is all good news for home builders because this tech-savvy generation—numbering 80 million-plus and expected to be 50 percent of the workforce by 2020—is itching to buy houses.
Although millennials, who are aged 18 to 34, witnessed the housing boom and bust, they still perceive home ownership as a good investment. Much of their interest in home buying is fueled by ultra-low mortgage interest rates, rising rental costs, and possibly by concerns that they’ll never shed their college debt.
A recent survey by the PulteGroup, No. 2 on the Builder 100 list of the nation’s largest builders, shows that millennials who rent are highly interested in buying a home. Of millennials who earn more than $50,000, 65 percent of those surveyed reported that their intention to buy a home significantly increased during the past year.
The Pulte survey also revealed that the primary reason (52 percent) millennials wanted to purchase a home was to build equity. No. 2 (12 percent) was they were tired of apartment living.
House Trumps Marriage
Likewise, millennial couples are more likely to buy a house before they take their wedding vows, according to a recent Coldwell Banker Real Estate survey. Almost a quarter of married homeowners aged 18 to 34 bought a place together before they tied the knot, compared with 14 percent of those 45 and older (in other words, their parents), the survey reveals.