A study of 1,071 millennials was conducted by Lombardo Homes in order to gauge their attitudes towards homeownership and just how well they understand the process. The study found that a whopping 83% of millennials are actively saving up to purchase their first home, however, there are large hurdles in their way.
According to the survey, 83% of millennials are actively saving to purchase a home, 51% are in credit card debt, 39% are in student loan debt, 29% have auto loans and 17% of those surveyed have medical debt. The study found that an alarming 66% of those surveyed said they are waiting on lower mortgage rates to start the homebuying process, despite the fact that rates have been hovering among record lows.
Additionally, Lombardo Homes reported that the millennials surveyed in the report do not see real estate as an attractive way to invest their money.
“Twice as many millennials prefer the stock market for investing over real estate. In fact, more millennials even prefer cryptocurrency (24%) over real estate (22%), as far as investment opportunities go,” according to the survey.
“When asked about the upfront costs and long-term financial implications of homeownership, underestimation was the trend. Millennials underestimated how much home they can afford right now, underestimated how much interest they would pay over a 30-year mortgage, and underestimated how much home values appreciate over ten years, on average.”
Read more from Lombardo Homes' survey of millennials to learn what other aspects of the homebuying process they are struggling with.
