A recent survey conducted by Clever Real Estate sheds light on the homeownership aspirations and challenges faced by American millennials in 2024. While over three-quarters of millennials view owning a home as an integral part of the American dream, the survey reveals that 48% find homeownership to be financially out of reach.
The survey, which involved 1,000 American adults aiming to purchase a home by the end of 2024, delves into the attitudes and preferences influencing their homebuying decisions.
A significant 93% of millennials attribute the volatility in the real estate market as a major hindrance to their homebuying plans. Moreover, 76% anticipate the market conditions worsening before they can make a purchase, leading to a sense of uncertainty. Interestingly, 33% of current homeowners express guilt about their property ownership when considering the financial struggles faced by their peers.
For those millennials determined to proceed with a home purchase, 42% are willing to make concessions on the property's characteristics, while 29% expect to make financial compromises. These compromises may include accepting higher interest rates, making multiple offers, stretching their budget, or paying over the asking price.
The fear of making a substantial investment in a property that falls short of their ideal "dream home" haunts 96% of millennials. Concerns range from potential major repairs (35%) to worries about affording mortgage payments (25%).
High-interest rates emerge as a key factor influencing millennials' homebuying plans, with 66% considering it an unfavorable time to buy. Surprisingly, 78% are open to accepting interest rates higher than the national average of about 7%, showcasing their willingness to navigate the challenging market conditions.
Financial constraints become apparent as one in four millennials has savings below $10,000, and one in eight has less than $1,000 in savings. An additional 5% have no savings at all. Consequently, 47% of millennials planning to buy a home aim to put down less than 20%, reflecting their financial realities.
In their pursuit of homeownership, 67% of millennials express a willingness to buy a fixer-upper, with 79% willing to pay over asking price to secure a property. Last year, this figure was even higher at 85%. Notably, one in nine millennials is prepared to go as far as $100,000 over asking price to realize their dream home.
Despite the challenges, millennials remain resilient in their quest for homes, with 67% considering purchasing a home with asbestos, 62% with mold, and 58% with foundation issues. However, regrets plague 90% of millennials who already own homes, with the most common being related to location (27%) and neighbors (26%).
As millennials adjust their expectations for homeownership in 2024, 50% plan to save more money, while 40% are increasing their budgets. A third of millennials aim to save a larger down payment, opt for a more affordable home, or postpone their homebuying plans, with 32% actively exploring mortgage options.
In conclusion, the landscape of homeownership for millennials in 2024 is shaped by challenges and adjustments, reflecting their determination to navigate the complexities of the real estate market.
