Not long ago, the young got married and then bought a home. Not today. Even more amazing, they put planning for retirement as their top priority — above home buying. These are the primary observations in an article in the Washington Post, which summarized two research studies: Bank of America’s 2018 Homebuyer Insights Report and a study by the American Enterprise Institute (AEI) Center on Housing Markets and Finance.
Fiscally Conservative Millennials To Have Positive Impact
Adding these surprising facts, to what we have observed recently about the buying habits of the Millennials, we predict the following.
- Increase in quality and value of purchases as millennials move from temporary housing to permanent homes.
- Greater tendency to employ the services of a interior decorator to design an environment for the long term
- Need to meld the old with the news, as family caste offs needed to populate the house with more space than an apartment.
- Insist on price transparency– no surprise charges
- Comparative shopping before trusting either an agent or themselves.
Positive Impact in the Lower Cost Cities
The high cost of renting and the impending increase in mortgage rates are undoubtedly the reason for the surge in home ownership now. The probability of home ownership is higher in the lower cost cities: the most affordable locations include Pittsburgh, Cleveland, Cincinnati, St. Louis, Detroit, Milwaukee, Oklahoma, Houston and Indianapolis. In Pittsburgh, the median first-time buyer spends 2.3 times their annual income to purchase a home. The least affordable locations include San Jose, Los Angeles, San Francisco, San Diego, Denver, Salt Lake City, Seattle, Portland, Ore., and Sacramento. San Jose, being the most expensive, requires five times annual income to buy a home.
Fiscally Conservative Millennials To Have Positive Impact
Adding these surprising facts, to what we have observed of late about the buying habits of the Millennials, we predict the following.
- Increase in quality and value of purchases as millennials move from temporary housing to a permanent home
- Greater tendency to employ the services of a decorater to design an environment for the long term
- Instance on price transparency– no surprise charges
- Probably some comparative shopping before trusting either an agent or themselves.
