National home builder PulteGroup, Inc. recently released its PulteGroup Home Index Survey (PGHI), showing that millenials are not likely to be life-long renters. Quite the contrary, as of those in the 18-34 age bracket who made more than $50,000, 65 percent of them indicated that their intention to buy a home has either significantly or somewhat increased in the past year.
“Millennials have witnessed the housing boom and bust, but still believe home ownership is a good investment,” said Fred Ehle , vice president for PulteGroup. “Consistent with other third-party research that shows more than 90 percent of millennials plan to buy a home someday, we see a lot of young adults who are making financial sacrifices to afford a place of their own. With the combination of incredibly low mortgage rates, rising rental rates, and very low inventory levels, millennials realize now is a good time to purchase a home.”
Another interesting revelation from the PGHI, most millennial home buyers won’t be buying their first homes alone. Of those surveyed, 76 percent of millennials indicated that they will live with a spouse or significant other, and of those not moving in with a significant other, 22 percent anticipate having a roommate living with them, including a friend, parent, sibling, grandparent or in-law.
According to a recent press release from PulteGroup, the major home builder claims to have sold just over 19,000 homes in 2012, approximately 30 percent of which were to first time buyers in this demographic. In the company’s internal buyer surveys, more than 50 percent of millennials reported that the desire to own/build equity was their primary reason for purchasing a home. This is great news, as it stands as evidence that home ownership is still regarded as a wise financial investment over renting and the young people who are buying for the first time aren’t put off by the negative media of recent years past. The second largest reason, at 12 percent, was that millennials were tired of apartment living. Understandable, as life in an apartment or condo complex can certainly have its drawbacks. From noisy neighbors to absentee landlords to high pet fees and more.
The findings of the index can tell us a great deal about today’s home buyers. With millennials venturing into the real estate market, home sellers, lenders and real estate agents will want to take note of the specific needs of this group. Here’s a look at what these buyers consider extremely or highly important, based on the PGHI:
- 84 percent said ample storage for daily items
- 76 percent said space for TV, and watching movies/sports
- 73 percent said the entry to the home
- 63 percent said outdoor living/deck
- 36 percent said the ability to conduct business from home
- That last one may be further down on the list, but it could become a biggie in the next few years – especially since more and more people are choosing to work from home. The advances in technology and telecommunication have made it not only possible, but in many cases more efficient for some professionals to work remotely.
Storage continues to be a fairly universal demand for home buyers, no matter what age group. According to data collected from a survey by the National Association of Home Builders (NAHB), storage options were the second most wanted feature with home buyers.
From the NAHB press release:
“Large majorities want a laundry room, a linen closet in the bath, garage storage and a walk-in pantry.”
The most wanted feature was energy efficiency, with 94% of respondents listing Energy-Star rated appliances as “must have” or “desirable.”
So real estate agents, home remodelers and builders take note! It would be wise to cater to these up-and-coming home buyers’ desires as best you can.