There is good news on the homeownership front as the future doesn’t just look bright for those in the market right now, but the future looks bright for those still living under mom and dad’s roof. That’s right. According to two recently released reports, both young adults (Millennials) and teenagers (Generation Z) still see homeownership as an important piece of their future success. The first step to the market realizing its full potential is that belief in the market is there. With this news we can all rest easy knowing that homeownership is still on the minds of our younger generational counterparts.
A report by The Demand Institute, Millennials and Their Homes: Still Seeking the American Dream, revealed that the Millennial Generation is optimistic about their financial future and still believe in homeownership. The findings were based on a survey of millennial households (ages 18-29).The findings were excellent news for the future of the market as the report predicted that:
- 8.3 million new Millennial (Generation Y) households will form in the next 5 years giving the Millennial Generation the largest portion of the housing market.
- $1.6 trillion will be spent on home purchases by Millennials and $600 billion on rent over the next 5 years.
This bold prediction shows that Millennials are optimistic about their finances and homeownership potential. Of those surveyed:
- 74% expect to move within the next 5 years.
- 79% expect their financial situation to improve.
- 75% believe homeownership is an important long term goal.
- 73% believe homeownership is an excellent investment (not good, not great, EXCELLENT).
- 24% already own their home.
- An additional 60% plan to buy a home in the future.
- 44% do think it would be difficult to qualify for a mortgage.
What does this mean for the housing market? It means that the market is going to keep chugging along gaining traction as the economy and the market both continue their road to recovery. But what about the next generation (today’s teenagers)? A recent survey by Better Homes and Gardens revealed that Generation Z (teens ages 13-17) is very traditional in their views toward homeownership and is willing to sacrifice to attain the American Dream. The survey shows:
- 82% of Generation Z teens indicate that homeownership is the most important factor in achieving the American Dream.
- 89% said owning a home is part of their interpretation of the American Dream.
- 97% believe they will own a home.
- 77% chose owning a home over owning a business.
It seems that the belief that homeownership as a huge part of the American Dream still beats in the hearts of the young people in this country. In generations that are considered to have a growing detachment from the dream of our ancestors, it appears that many Americans are looking to become future homeowners in order to fulfill their American Dream. So, for all of those decrying that this is the end for the housing market, it appears that numbers and statistics show strong favorability for a grand recovery.