Your most eager customers for homeownership are likely young adult renters at the moment, but reality bites as they try to shop for a home. Young millennial renters (those under the age of 29) are significantly more likely to want to buy a home in the next 12 months than older millennials or Generation X renters. However, affordability from rising home prices is proving a major barrier, according to a new study released by CoreLogic and RTI Research of Norwalk, Conn., on attitudes toward homeownership.
“One-third of millennial renters reported feeling they cannot afford a down payment to buy a home,” says Frank Martell, president, and CEO of CoreLogic. “With home prices rising quickly over the past few years and supplies low, first-time home buyers face ever-growing challenges to find and buy affordable entry-level homes. More needs to be done to help our first-time buyers join the homeownership class.”
Sixty-three percent of younger millennials who are not interested in homeownership cited the inability to afford a home or down payment as the chief reason why they hadn’t, versus 50 percent of older millennial renters and 52 percent of Generation X renters. Renters in the baby boomer generation say they aren’t interested in homeownership at the moment due to the stage they are at in their lives.
Source:
“Home Price Insights,” CoreLogic (Aug. 7, 2018)
