By Ali Wolf | Builder
Homeownership has traditionally been considered a key component of the “American dream.”
In fact, 98% of millennials want to become a homeowner at some point if they aren’t already, according to Zonda’s 6th annual millennial survey of more than 1,000 respondents across the country.
Millennials are the largest living generation in the U.S., and their decision to buy (or not) is the biggest potential tailwind (or headwind) to housing demand over the next few years.
Historically, the older the individual, the higher the homeownership rate. The trends we are seeing for millennials are no exception. Those younger than 35 have a homeownership rate of 39.3%, with that level reaching 62.5% for those 35 to 44, according to the U.S. Census Bureau. It is also not surprising that the homeownership rate is higher in more affordable housing markets across the country compared with more expensive ones.
With this in mind, we think it is important to understand why millennials end up buying but also why some are still renting. We turned to our survey for answers.