The concept of a starter home may be a non-starter for millennials, at least according to findings from Berkshire Hathaway HomeServices’ latest Homeowner Sentiment Survey. The study found that besides saving for a down payment, 37% of millennial renters indicated they are interested in buying a house only when they’re ready to afford their dream home, relegating the concept of a “starter home” to virtual non-existence.
But even if millennials are holding out for their perfect property, this cautious generation is still the most optimistic about the real estate market and most satisfied with the U.S. economy, survey findings revealed. In fact, 76% of respondents ages 18 to 34 view housing favorably, up a point from last spring and a full 17 percentage points from November. A large majority of millennials (85%) also believe that owning a home is an important part of the “American Dream,” a sentiment shared with older generations.
But even if millennials are holding out for their perfect property, this cautious generation is still the most optimistic about the real estate market and most satisfied with the U.S. economy …
Not shared with other generations, however, is millennials’ biggest challenge in purchasing a home. Overwhelmingly, the survey millennial respondents said securing a low mortgage rate is their greatest hurdle to homeownership while Gen-Xers said their largest barrier is saving money for the purchase, and boomers said their biggest challenge was “finding a home that suits their family’s wants and needs.”
“Mortgage rates may be hindering millenials from purchasing a home,” said Gino Blefari, CEO of HSF Affiliates.” However, encouraged by an optimistic outlook on housing and the economy, I think we’ll start to see more millennial buyers in the market, especially as rates remain at historic lows.”
Read the full press release here.