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The Millennial Homebuyer

The Millennial Homebuyer

A recent study by focused exclusively on millennials and their intentions about buying a home. The data comes from nearly 6,000 millennial renters (age 18-34) at a time when home ownership for American's under 35 is the lowest in history since 1984.  Here, we break down the key findings in the report.

· 53 percent of millennials plan to wait until after 2018 to buy a home but age and marital status are major components

· 74 percent of millennials plan on purchasing a home in the future. 9 percent expect to always rent and 17 percent are undecided.

· While many millennials plan to buy, only 25 percent expect to do so in the next two years and 53 percent plan to buy after 2018

· Renters over 35 plan to purchase much sooner than millennials, with 50 percent planning to do so in the next two years

· Within millenials, it was found that millennials between 25 and 34 plan to buy sooner than those between 18 and 25 by a large margin: 54 percent of older millennials plan to buy within the next 3 years versus only 37 percent of younger millenials

· Maritial status correlates strongly with buying intent: 52 percent of married millennials plan to buy within the next 3 years versus only 41 percent of unmarried millennials

· Older married millennials expect to buy the soonest, with 58 percent planning to own within the next 3 years - nearly twice the rate of younger, unmarried millennials (30 percent).

· Homeownership aspirates are strongly linked to education levels. More than 77 percent of millennial renters who have a college degree (2 year degrees, 4 year degrees and technical degrees) plan to buy homes, versus 67 percent of those with high school/ GED degrees and 63 percent of those who did not finish high school.

· Millennials with graduate degrees have lower plans to buy than those with 2 or 4 year degrees (72 percent vs 77 percent). This outcome may be driven by the burden of student debt.

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