Rent and home affordability are both major concerns for millennials
Homeowners are worried about how they will be able to afford the houses they are buying.
The real estate brokerage Redfin uncovered these worries in a survey of 1,887 homebuyers in 41 states and the District of Columbia. The survey was conducted Aug. 7 through Aug. 15.
More than 28 percent of homebuyers surveyed said they were most worried that “prices are rising or are too high.” Affordability concerns are most pronounced among homebuyers 35 and younger.
More than 32 percent of millennial homebuyers cited affordability as a top concern, with more than 10 percent saying they might not have enough money for a down payment. The second top concern for millennial homebuyers is “too much competition from other buyers” at 13 percent, and “lack of homes to choose from” at more than 12 percent.
And while new homebuyers fret about affordability of their homes, it is high rental prices that drove them to home buying in the first place. According to Redfin, nearly half of all first-time homebuyers, 45.4 percent, said they were most influenced to get into the housing market because of high rent.
A year ago, just less than 25 percent of new homeowners said they were house hunting because of high rent. Even experienced homebuyers are getting concerned about the comparable cost of rental prices. Among all homebuyers surveyed by Redfin, 22 percent said the cost of rent motivated them to buy, up from almost 13 percent a year ago.
But not every homebuyer is sweating affordability. Just over 10 percent of homebuyers surveyed by Redfin had “no major concerns about buying.” And more than 26 percent of homebuyers said they were most influenced to purchase a home because of a major life event such as a birth of a child or a marriage.
Millennial homebuyers, once they get past affordability concerns, are looking for idyllic places to live. After the quality, design and floor plan of a home, millennials are most concerned about school quality, easy commutes, a yard or green space and walkability.
New and would-be homebuyers concerned with managing debt burdens can turn to Debt.com for resources and advice including free calculators and budgeting tools for mapping your way out of debt and saving up enough money for a down payment for a home.
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Article last modified on March 3, 2017. Published by Debt.com, LLC . Mobile users may also access the AMP Version: Homebuyers Are Concerned About Affordability, Especially Millennials - AMP.