Millennials better target for home builders, survey finds

Millennials better target for home builders, survey finds

Unlike their generational predecessors—the so-called Gen-Xers—today’s “millennials” are considered a better target for home builders.

According to an article in SFGate.com, 81 percent of millennials in the sample area surveyed (San Francisco) want to buy a home. In contrast, only 68 percent of Generation Xers wish for homeownership, compared to 72 percent of those 65 years and older. The statistics were revealed in a recent survey by American Modern Insurance Group.

For clarity, the generational age groups break down like this: Baby Boomers (born 1946-64), Generation X (born 1964-81), Millennials (born 1981-2001). Here’s another distinguishing barometer, philosophically: Boomers want to know, “What does it mean?” Gen Xers need to know, “Does it work?”
Millennials are curious to know, “How do we build it?”

“Millennials seem to value the importance of homeownership in large part because they want to find financial security and make sound investments,” said Michelle Mayhall, marketing analysis team supervisor with the survey company. “Millennials are less interested in making rental payments and more optimistic in building home equity.”

Additional survey results support Mayhall’s contention, with more than half of millennials viewing homeownership as a better financial investment than renting. More than a quarter of millennials also view owning a home as a more stable option than renting.

Nine in 10 millennial respondents stated that they plan on owning a home someday, though many in that number face financial issues that thwart them in the pursuit of that goal. More than half of millennial respondents cited financial barriers, such as the inability to afford a down payment or the monthly expenses (mortgage, taxes, etc.), as the primary obstacles to owning a home.

Financial hardships notwithstanding for these potential homeowners, they “still place tremendous value on the importance of homeownership,” according to Mayhall.

2017-12-12T14:19:00+00:00 February 2nd, 2016|Blog|