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MILLENNIALS
BUY INTO THE
AMERICAN
DREAM
Homeownership might not be an
immediate option for many millennials, but
according to a study by Clever Real Estate, it
remains a core component of the American
Dream for 84 percent of potential homeowners
of this generation. is generation is here
to stay not only as homebuyers but also as
investors in real estate, the study revealed.
For the study, Clever Real Estate conducted
a survey of 1,000 homebuyers who were
planning to purchase a new home within
the next year. Fifty-one percent of these
respondents were aged between 18 to 34 years
(the age-group classified as millennials).
e study revealed that millennials were
52 percent more likely than baby boomers or
Gen-X to invest in property with 9 percent of
those surveyed saying that they were interested
in renting out new properties for passive
income.
Looking at why millennials were buying
homes, the study found that the need for
more space was the number-one reason
that was driving more millennials towards
homeownership. Fifty-four percent millennials
cited it as a reason. is was closely followed
by the belief that real estate was a sound
investment (43 percent), it's more affordable
than renting (43 percent), and the need for
more privacy (38 percent).
Millennials weren't afraid of buying
fixer-uppers either with around 68 percent
of those surveyed noting that they were
willing to purchase a home that required
repairs. However, the study pointed out that
millennials failed to realize that a home
needing major repairs was more likely to hurt
them than save money.
Citing a report by Home Advisor, the
study said that the average cost to remodel a
bathroom in 2018 was $9,742, whereas a kitchen
was $22,145.7 and that debt-ridden millennials
or those struggling to save enough for a down
payment "should think twice before investing
in a home in need of immediate, structural
repairs."
With down payment one of the
biggest obstacles cited by millennials to
homeownership (37 percent), the study
indicated that 31 percent millennials were
looking to purchase more affordable homes in
the $100,000 to $199,999 price range.
