A new study finds that millennials are changing their attitudes toward homeownership, now viewing it as a positive step for their financial future.
For the second year Bank of America released its Homebuyer Insights Report which explores the trending attitudes, behaviors and preferences of the modern homebuyer, especially millennials.
“If there’s one thing to take away from our report this year, it’s that forward-thinking millennials are buying homes — and they’re happy with their choice,” Consumer Lending Executive D. Steve Boland said.
“This growing group of millennials is seeing the value of getting into a home. In fact, nearly 80 percent who bought homes report that homeownership has had a positive long-term impact on their financial picture,” Boland said.
“Clearly, the millennial generation is coming of age and realizing it might not make sense to wait anymore to purchase their first home,” he added.
While millennial homeowners are seeing the value in buying early, many realize it may mean putting the purchase of their dream home on hold, at least for a while.
The report concludes that 68 percent of the sample groups said their current home serves as a stepping stone to their dream house.
“While ‘dreamers’ told us last year that they want to skip the starter home in favor of a house that suits their needs over the long term, the overwhelming majority of millennial homeowners say their current home is a ‘stepping stone’ to their forever home,” Boland said.
“These millennial owners strongly believe owning a home is more affordable than renting,” he noted.
The report also indicates that millennial homeowners are more likely to recognize the financial benefits of purchasing a home than prospective first-time buyers from among other age groups.
Boland asserts that some prospective first-time homebuyers believe their personal circumstances should line up perfectly before buying a home, but with millennials it appears to be different.
Out of the Baby Boomers and Generation X, millennials are 41 percent least-likely to seek a move-in ready home. Millennials are also the second least-likely to define homeownership as success and last in seeing it as permanent.
“The reality is that, with proper help, homebuyers can very often achieve homeownership in a way that is both sustainable and rewarding,” Boland said.
“We’re encouraged to see homeowners continuing to find the deep benefits — both financial and emotional — of homeownership.”