A majority of millennials who plan to buy their first home in the next 36 months say they can’t afford the type of home they would like to live in, according to data provided to MReport by ValueInsured. The company surveyed 1,019 adults who were planning to buy their first home in the next 36 months, but did not currently own a home. The report said that 76 percent of the respondents lived in a home where they paid rent and 24 percent lived in a home where they did not pay rent.
Of the millennials surveyed, 54 percent plan to buy a “forever home” or a home where they can live for a while and 40 percent would like to buy a starter home that they can upgrade from. As far as budgets are concerned, 74 percent said that they plan to cap their next home purchase budget at $250,000.
While 38 percent said they would like to live in their new home with their spouse or partner with children, 16 percent planned to share their home purchase with friends, roommates or rental tenants. However, only 36 percent were confident that they could afford the down payment now to buy the kind of home they would like to live in.
The report indicated that a majority of millennials cannot afford to buy a home now and even among those who could afford to buy immediately, only 46 percent thought that now was a good time to buy a home. Around 55 percent of respondents said they were concerned with timing the market and wanted to make sure they were not buying at overvalued rates.
Moving jobs or losing a job was a major concern for these first-time buyers with 48 percent being concerned about a job move or a job loss after they committed to buying a home.
The survey also highlighted the top three criteria that these homebuyers look for in an ideal home with a nicer home that needs less upgrade or renovation; a bigger home with more room or space; and access to better schools making it to this list.