Skip to main content

Study: Millennials View Homeownership with Mixed Feelings

Jul 20, 2018
First-time Millennial homebuyers are still agitated over not having enough funds to make a downpayment on a house, according a survey by Redfin

A new study has found the majority of Millennials are looking at homeownership as the primary strategy for building their investment portfolios. However, the study’s authors warn that approach might have greater costs than benefits.
 
According to the Bank of the West 2018 Millennial Study, 56 percent of surveyed Millennials cited homeownership as the key to their financial endeavors. Following homeownership, 51 percent cited paying off debt and 49 percent cited having the financial means to retire comfortably as the second and third most important factors in their future.
 
However, the American Dream may not be entirely rosy for this youthful demographic. Sixty-eight percent of the study’s respondents admitted they had buyer's remorse after acquiring a home, adding they should have been more prepared going into the purchase. Forty-four percent had issues with space itself, while 41 percent said the purchase frayed their finances.
 
“The fact that nearly one in three millennials who already own their homes have dipped into their retirement nest eggs to finance their down payment is alarming,” said Ryan Bailey, head of the Retail Banking Group at Bank of the West. “A white picket fence can certainly be a smart investment. To help avoid buyer's remorse, millennials should consider covering their bases and kicking the proverbial tires—reflecting on their physical and financial wishes for their home before they sign on the dotted line.”
 
Still, all of the data is not gloomy. Four in 10 Millennials polled for the study are homeowners already, while 92 percent of the remaining respondents expressed interest in someday owning a home.
 
About the author
Published
Jul 20, 2018
Co-Founder Mat Grella Terminated From NEXA

NEXA CEO Kortas states negotiations regarding the buyout will continue.

Mar 27, 2024
Comings And Goings At AmeriHome

Chief Operating Officer John Hedlund announced his retirement on Thursday in a LinkedIn post.

Mar 22, 2024
Rocket's Tim Birkmeier To Retire

Birkmeier is bidding farewell after a 28-year career at Rocket Companies.

Mar 21, 2024
How NAR’s Settlement Impacts Homebuying

While the settlement's silver lining is that homes are expected to become more affordable, many uncertainties loom over the housing market.

Mar 19, 2024
NAR Reaches $418 Million Settlement

The association agreed to give home sellers the option of compensating agents.

Mar 15, 2024
U.S. Non-Bank Mortgage Lenders Surge Amid Industry Consolidation, Fitch Ratings Reports

As smaller players exit the market, scaled originators like UWM and PennyMac Financial dominate, but challenges persist with low origination volume and pressured margins amidst rising interest rates.

Mar 14, 2024