A portion of Generation Y expects to become first-time home buyers in the near future. Nearly 30% of millennials plan to buy their first house within the next five years, according to a recent survey conducted by Choice Home Warranty.
The survey, which asked 1,002 respondents nationwide about their plans to buy a house, was conducted in January across relevant content platforms via Google Consumer Surveys. A total of 445 female and 557 male respondents, ages 18 to 34, weighed in on their plans to buy a house. In addition to age, gender, and home buying plans, the survey also gathered respondents’ region, density of where they live, and income. Responses were weighted based on inferred location and gender to extrapolate trends for the millennial population nationwide.
The weighted survey results suggest 30% of millennials plan to buy a home within the next five years, but 17% do not plan on buying a home at all. Based on breakdown by income, about 40% of those making less than $24,000 a year plan to buy a home and only 14% already own one. Meanwhile, 25% of those making $50,000 to $75,000 plan on buying a home in the same time frame, but 33% already own one. Weighted breakdown by gender shows 15% of women report they never plan to buy a home; 19% of men say the same thing. In the 25 to 34 age group, more women own homes than men with 41% of women already owning a home versus 36% of men.
Here is the raw breakdown of plans to buy a first house by percent of respondents:
Broken down by income and urban density, more than 75% of the survey respondents have an annual income of $25,000 to $75,000. Nearly 90% of respondents live in suburban or urban areas with only 10% in rural America.
Although there are a disparate number of responses between age groups, the breakdown of homeownership goals by age is still telling. Although there were about 30% more respondents in the 25 to 34 age group, respondents stating they already own a home still doubles between the two age groups.
Metrostudy predicts that rising rents soon will push more millennials to buy homes. Some companies already report that about one-fifth of their sales are to millennial buyers. Metrostudy’s forecast of healthiest markets in 2015 is packed with cities ripe with millennial migration and job growth like Austin, Texas, and Salt Lake City. While some will end up delaying a first-home purchase father into the future, growing urban economies and rising rents should keep nearly one-third millennials on track to buy a house by 2020.