Rising Rents Pushing Millennials To Become Homeowners

Dated: 04/04/2018

Views: 4

SANTA CLARA, Calif. – April 2, 2018 – This year, the typical spring buyer is on the hunt for a three bedroom, two-bathroom home with a garage and up-to-date kitchen, according to a new survey released from realtor.com. The survey also found that family needs and rising rents are motivating millennials to get into the market, while 55+ buyers are looking for privacy and comfort in their new home. 

"Although record-low inventory and high prices make this housing market unique, some classic features still top most shoppers' wish lists," says Danielle Hale, chief economist for realtor.com. "At the same time, we found some clear differences in priorities. For instance, older buyers are concerned with privacy and being able to age comfortably, while millennials place more emphasis on family needs, stability and personal expression." 

Based on an online survey of more than 1,000 active buyers conducted in early March by Toluna Research, the survey provides insight into both the most sought-after homes as well as the motivations underpinning what shoppers are looking for. 

Majority of buyers want space, multiple bathrooms and a garage The survey found that 44 percent of all respondents said they are looking for a three-bedroom home, and 93 percent of respondents want at least two bathrooms. Additionally, 27 percent of all buyers rate a garage as one of the most important home features, ahead of an updated kitchen (24 percent) and open floor plan (20 percent). 

Older buyers want privacy & comfort; millennials favor family & self-expression More than 20 percent of buyers 55 years and older said that privacy – having a space solely of their own – was their main goal for purchasing a home. That was followed by their motivation for physical comforts (18 percent) and stability (5 percent). 

Fulfilling family needs took the top spot for millennial buyers (17 percent), followed by stability (14 percent) and personal expression (13 percent); only 12 percent of buyers younger than 55 cited privacy as their chief priority. However, 9 percent of 35- to 54-year-old buyers and 6 percent of 55+ cited personal expression as a main goal for purchasing a home. 

For millennials, the rent is too high Twenty-three percent of buyers between 18 and 34 years old reported rising rent as a trigger for their desire to purchase a home – more than any other option. This corresponds with steep increases in rents across the country in recent years, especially in many high-cost urban areas that have become magnets for millennials. HUD data shows that rents were up in 85 of the top 100 metro areas, including 9 metros where rents rose by double-digit percentages from a year ago. 

Millennials like contemporary and colonial homes; older buyers prefer ranches Among millennials who expressed a home-style preference – 11 percent didn't – contemporary and colonial homes took the top spots, each favored by 10 percent of respondents. On the other hand, ranches are the most popular home style for buyers 55 and older, favored by 28 percent, followed distantly by contemporary homes at 12 percent. Only 6 percent of millennials favor ranch homes. 

© 2018 Florida Realtors®

Blog author image

Ron Haibi

With over 12 years in the Real Estate Business, I have personally sold hundreds of homes such as resales, foreclosures and REO’s. As the owner and active broker, I hold many designations to better s....

Latest Blog Posts

Qualifying For A FHA Loan May Be Easier Than You Think

"Getting pre-approved for a mortgage requires great credit and a large down payment". FALSE! The Federal Housing Administration (FHA) recognizes that not everyone has 20% 

Read More

Get The Home You Want Millennials Smart Strategies For FirstTime Homebuyers

Hey, Millennials. Come on into the real estate market! We really need you to buy some homes so we can keep chugging along. Oh, wait. Prices are rising and so are interest rates, plus inventory is

Read More

Property Survey Always Wise Often Required

Question: At our settlement recently, a lawyer charged us $150 for a survey. When we questioned this charge, we were told it was a lender's requirement and we could do nothing about it. Just what is

Read More

Mortgage Loan Qualification

Before house-hunting ever begins, it is good to know just how much house the borrower can afford. By planning ahead, time will be saved in the long run and applying for loans that may be turned down

Read More