It might not sound like a big deal, but the millennial generation, born between 1980 and 1995, is rapidly joining the housing market. We’re talking about the “boomerang generation” — dubbed so for the mass quantities of college grads who favored moving back in with their parents to save on rent.
So now that millennials are starting to leave the nest, you might wonder what exactly drives this generation to consider the benefits of taking on a mortgage. A recent survey conducted by the Harris Poll provided some interesting intel into what might prompt millennials to make this move:
66% – More Living Space:
With so many millennials opting to save money by living at their parents’ house or with a roommate, it’s no surprise that when this generation does feel ready to take that leap, extra living space ranks high on the list of reasons to buy a home. Whether the need for more square footage means room for entertaining, a 2-car garage, or even a bedroom to rent out, the money they’ve been saving to this point might help them afford it.
36% – Build Equity:
Whether it means buying a fixer-upper in order to afford that dream neighborhood or looking for a starter home that fits their current lifestyle, millennials recognize that owning a home is an investment. And given the choice between paying someone else rent that increases annually or paying down a flat mortgage… it’s kind of a no-brainer.
33% – Yard or Better Space for a Dog:
There’s a certain amount of freedom that comes with owning a home, and owning a pet certainly ranks high on the millennial list of priorities, whether there’s currently a pet or they hope to find one. It’s no wonder that furry friends have many millennials forgoing a lease agreement in favor of a mortgage — monthly pet fees and deposits are a common added expense for renters. And if there’s any concern that a pet might accidentally escape while the groceries are carried in, finding a home with a mudroom or fenced-in yard can offer compelling motivation.
25% – Marriage:
Life events often trigger the urge to buy a home, so this number might seem shockingly low. That said, the median age of marriage is now closer to 30 than ever before, so the older half of the millennial generation is just starting to exchange vows. And since more and more millennials are putting marriage on hold in favor of simply living together, this could explain why only a quarter of the millennials polled listed marriage as a reason to buy a home.
19% – Birth of a Child:
A growing family rounds out the bottom of the list of reasons millennials might consider buying their first home. This may not reflect was the trends in previous generations, but it makes sense once you factor in the large number of millennials who are prioritizing their career ambitions or travel goals ahead of starting a family.