Nearly two-thirds of millennials expressed an increased interest in buying, and it’s not because they are tired of apartment living, according to a survey from Pulte Group, Inc., a national homebuilder.
The PulteGroup Home Index Survey (PGHI) showed 65 percent of renters between ages 18 to 34 with an annual income of at least $50,000 said their intention to buy has increased significantly or somewhat over the past year.
The majority of millennials, or 52 percent, are interested in buying because they view a home as an investment and have a desire to own and build equity. Only 12 percent stated they are tired of apartment living.
“Millennials have witnessed the housing boom and bust, but still believe home ownership is a good investment,” said Fred Ehle, VP 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.”
Although many millennials are single, most aren’t planning to reside in their home alone. According to the survey, 76 percent said they plan to live with a significant other, whether it be a spouse or girlfriend/boyfriend. Another 22 percent plan to live with friends or relatives.
When looking for a home, 84 of millennial renters considered ample storage for daily items to be either extremely important or very important.
Millennials also want to use their space for entertaining, with 76 percent categorizing space for TV, movie, or sports watching as extremely or very important.
“Millennials today want a lot of value in their home that makes efficient use of every space. In fact, the single most important home feature to a millennial buyer today is the floor plan layout,” Ehle added.
Other features that were viewed as extremely or very important were entry to the home (73 percent), outdoor living/deck (63 percent), and ability to conduct business from home (36 percent).
The survey also found more than 90 percent of millennials use the internet for information when shopping for a home.
by Esther Cho