While a large portion of millennials want to purchase a home, many are just not ready to take that step. According to research from Trulia released Wednesday, only a small portion of millennials (ages 18-34) who plan to buy a home will do so within the next year.
In an online survey, Trulia surveyed 2,026 Americans in late May 2015 about their homeownership aspirations and found that only 11 percent of millennials indicated that they intend to purchase a home within the next year, while 72 percent said they plan to purchase in 2018 or later.
This group of potential buyers' urgency only increased when marriage and children were added to the equation. While 11 percent of millennials that are unmarried with no children plan to buy a home in the next year, that number grew to 27 percent when a spouse and kids were added. However, the number decreased from 72 percent of young buyers noting that they would buy in two years or more down to 53 percent.
"In tracking the housing recovery, the intentions of millennials has been a key indicator that we’ve been following," said Selma Hepp, Trulia's chief economist. "This generation of first-time homebuyers was hit hard during the recession, and their ability to find jobs, move out of their parents’ homes and form their own households, and eventually become homeowners is a key part of a healthy housing market."
A host of issues were pointed out by those surveyed that are hindering homeownership with money being the core problem followed by shifted focuses on cars, college tuition, vacation trips, marriage, or retirement.
Currently, only 36 percent of millennials are saving up to buy a home in the next five years. The majority, or 52 percent have their sights set on purchasing a new car, while 35 percent are focused on paying for college. As for all others, 26 percent are trying to take a dream vacation, 15 percent are wrapped up in wedding plans, 9 percent are monitoring their retirement, and 8 percent are wedding ring shopping.
Despite the varying priorities among millennials, this generation is still optimistic with 87 percent believing that they will be able to purchase their dream home one day.
"All in all, Americans are pretty realistic and practical when it comes what they want in their dream home," Hepp said. "This is likely because the dream of homeownership is largely driven by marriage and children. Having a duel income makes buying a home more affordable, while parents often want the stability that comes with owning a home. As a result, many would-be homeowners dream of finding a home where they can raise their families. Such is the game of life."