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The ‘American Dream’ Is Motivating Millennials


As the share of millennial homeowners continues to rise, with 37% of all home sales nationwide being made by 25- to 40-year-olds, a new realtor.com survey examines millennial buyers' main motivating factors.

A survey by Realtor.com found the desire to achieve the American Dream to be the No. 1 reason why  millennials, 59% of respondents want to buy a home.

That's followed by, "I want to live in a space that I can invest in improving" ranked second at 33%, followed by the "need for more space" at 31%, and "I want to build equity" at 22%.

"Americans, even millennials who many thought would never buy, have a strong preference for homeownership for the same reasons many generations before them have—to invest in a place of their own and in their communities and to build a solid financial foundation for themselves and their families," said Realtor.com Senior Economist George Ratiu.  "However, today's first-time homebuyers face unprecedented challenges brought on by a lack of available homes for sale and double-digit price growth. They are resilient though, with many in the market searching for their home for more than a year."

Here are some further findings and specifics from the study, which can be read in full on Realtor.com.

  • Not having enough money for a down payment is holding 44% of first-timers back.
  • Nearly two-thirds of millennials and 45% of Gen Z say a desire to be a homeowner is the main reason they are buying a home.
  • One-third of first-time homebuyers haven't been able to find a home within their budget.
  • Location tops the list of what prospective homeowners are looking for.
  • With a majority of respondents having been in the market since last spring, they are fully aware of the competition they are facing. Fifty-three percent expect a lot or some competition with one in five first-time homebuyers expecting a lot of competition.

About Author: Christina Hughes Babb

Christina Hughes Babb is a reporter for DS News and MReport. A graduate of Southern Methodist University, she has been a reporter, editor, and publisher in the Dallas area for more than 15 years. During her 10 years at Advocate Media/Dallas Magazine, she published thousands of articles covering local politics, real estate, development, crime, the arts, entertainment, and human interest, among other topics. She has won two national Mayborn School of Journalism Ten Spurs awards for nonfiction, and has penned pieces for Texas Monthly, Salon.com, Dallas Observer, Edible, and the Dallas Morning news, among others. Contact Christina at christina.hughesbabb@thefivestar.com.

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