Based on a report released by The Demand Institute, Millennials and Their Homes: Still Seeking the American Dream:
- In the next five years, 8.3 million new millennial (Gen Y) households will form. It is predicted that millennials will spend $1.6 trillion on home purchases and $600 billion on rent.
- The generation is optimistic: 79% expect their financial situation to improve and 74% expect to move within the next five years.
- Gen Y wants to own. Similar to other survey findings, 75% believe home ownership is an important long-term goal and 73% believe ownership is an excellent investment. 24% already own their home and an additional 60% plan to buy a home in the future.
- Looking forward: when they move, they will want more space and they will move to the suburbs to start families.
- 88% own a car, and they are open to moving locations where grocery stores, restaurants, and retail is within a short drive vs walking distance.
- 44% do think it would be difficult to qualify for a mortgage, and 69% would consider lease-to-own approaches to home buying.
- The data is based on a survey of more than 1,000 millennial households (ages 18 to 29).
- Check out http://demandinstitute.org/sites/default/files/blog-uploads/millennials-and-their-homes-final.pdf to view the entire report.