PulteGroup: Millennials Won't Be Life-Long Renters
Apr 3, 2013
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Millennials continue to show a strong interest in purchasing a home, according to a Home Index Survey by U.S. national homebuilder PulteGroup, Inc.
For renters ages 18-34 with an income of more than $50,000, 65% indicated their intention to buy has significantly or somewhat increased in the past year.
The survey showed that a majority of Millennials will not be living in their first home alone:
* 76% of Millennials plan to move into their first home with a spouse or significant other
* 22% of those not moving in with a significant other expect to have a roommate, which may be a friend, parent, in-law, grandparent, or sibling
"Millennials have witnessed the housing boom and bust, but still believe home ownership is a good investment," said Fred Ehle, vice president for PulteGroup. "Consistent with other third-party research that shows more than 90% 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."
The homebuilder said its own internal buyer surveys showed that more than 50% of Millennials said their primary reason for buying was to own/build equity. The second most important reason, at 12%, was that they were tired of apartment living. The home builder said it sold 19,000 homes in 2012. About 30% of its buyers were first-time homebuyers, many of whom were Millennials.
Ehle said Millennials want homes that make efficient use of space. "In fact, the single most important home feature to a millennial buyer today is the floor plan layout."
The survey found that 69% of Millennials want an open space in the kitchen and family rooms for entertaining family and friends.
The homebuilders' internal buyer surveys also showed that Millennials rate other aspects in a new home as extremely important/very important:
* 84%: ample storage for daily items
* 76%: space for TV, movie, sports watching
* 73%: the entry to the home
* 63%: said outdoor living/deck
* 36%: said the ability to conduct business from home
More than 90% of potential homebuyers do research on the Internet.
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