Millennials Say They'll Be Frugal as They Jump into Homebuying
New York, NY, January 31, 2019-Millennials may soon be hopping into the home buying market in higher numbers, but they are being conservative with their spending, reports CNBC.
“Fewer young people have been buying homes in their 20s and early 30s, compared to previous generations: Only 37% of people aged 25 to 34 owned in 2018, compared to 45% of both Gen Xers and baby boomers when they were that age,” according to the article, titled, Here's How Much Money Millennials Shopping for Homes This Year Plan to Spend.
“But as millennials get older and more financially stable, they're expected to increasingly become a driving force in the residential real estate market. That's according to a recent survey of 1,000 Americans, of whom just over half were aged 18 to 34, from home buying platform Clever Real Estate.”
The article reports that around 30% of millennials who are planning to buy a home in the next year say their price range is between $100,000 and $199,999, and 27% say they plan to spend between $200,000 and $299,999. Only 5% of survey respondents say they plan to spend $500,000 or more.
“Nearly 40% of Clever's millennial survey respondents say that being able to save enough for a down payment is the top obstacle they face in becoming homeowners while another 20% say that their biggest barrier to entry is the fact that homes are too expensive.”
The full report can be found here.