Most analysts who look at the housing market for 2018 expect to see price increases continuing, although at a somewhat slower pace, and inventory of houses for sale to increase, especially in the second half of the year.
But what do potential buyers think? Are homes still a good investment? Is buying a home still part of the American dream? How interested in homeownership is the millennial generation?
Researchers at NerdWallet asked these questions and more in an online poll of nearly 2,200 American adults over the age of 18. Here are some of the results.
About one-third of Americans (32%) say they plan to buy a home with the next five years because they believe that a home is a good investment. Nearly two-thirds (64%) of all those surveyed cite a home as a good investment, the most common reason given for prioritizing the purchase of a home.
Only 17% of Americans say they prefer renting to owning, and many of those suggest that financial necessity, not preference, is the real reason. More than half (56%) of renters said they don’t have the money to buy a house, 25% say they don’t want to make that kind of financial commitment and 22% said they had bad credit.
By age group, millennials are the most interested in buying. NerdWallet says:
82% of millennials (ages 18-34) say buying a home is a priority, according to the survey, compared with 75% of Generation X (35-54) and 69% of baby boomers (55 and older). Millennials also aspire to buy a greater number of homes, on average, throughout their lifetime and are most likely to say they’d like to buy a home to rent out for extra income.
A few other data points:
- 51% of millennials say that buying a home is “the next step in my life.”
- 36% of boomers are looking to downsize from their current home.
- 36% of millennials are concerned about housing availability.
- 41% of millennials are worried about qualifying for a mortgage.
Visit the NerdWallet website for more details and comments.