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A new survey by the Urban Land Institute shows that all Millennials expect to one day own a home, but that they are not exactly convinced that buying a house will be a good investment. For them the biggest benefits of owning a home are the privacy, the extra space, and the predictability of monthly cost.
Here’s what else the survey revealed about Millennials:
1. More Millennials are renting – 50 percent are renters. Even more than there were five years ago. 60 percent rent apartments or townhouse-style units; 40 percent rent single-family or mobile homes. Two-thirds of tenants are very satisfied or satisfied with being renters. Median rent is only $925 per month, so most cannot afford 21st-century luxury rentals.
2. Millennials are not downtown dwellers – Only 13 percent of Gen Yers live in or near downtowns. Despite that when it comes to self-image, 37 percent think of themselves as city people, 36 percent as suburbanites, and 26 percent as small-town or rural folks.
3. Many Millennials STILL live at home – 21 percent live at home. Most of those 16.5 million young people will eventually move out on their own, initially to rentals. 14 percent live in households containing three generations of family members.
4. Still hopefull for a brighter future – 100% expect to own a home eventually. Nine of ten expect to match or exceed their parents’ economic circumstances.
5. Millennials matter – In a generation of 78.6 million, any preference of even a small percentage constitutes a lot of consumers. Generation Y represents the largest source of new demand for rental housing and first-time home purchases.
6. Single Family homes are still the dream – Regardless of their current living situation 7 out of 10 Millennials would like to someday own a single-family home. Only 28 percent expect to live in a multifamily building.
Here’s what the survey revealed about Millennials who do own homes:
1. Single family living is king – Of the 26 percent of Millennials that already do own a home 8 out of 10 live in single family homes.
2. New construction is only for a select few – Over one fifth of owners bought a newly built home. When asked how important it was to live in new home, 22 percent consider it to be very important, 36 percent say it is somewhat important, and 42 percent say it is unimportant.
3. It’s all about the neighborhood – Owners were also asked to comment on the the best features of their neighborhood. Ranking at the top was that they were stable and safe, quiet, had good schools, and short commutes.
Read the full survey results here.