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What's Going on with Millennial Homeownership?

NOVEMBER 2014 INFOGRAPHIC the futures company What's going on with ... MILLENNIA LO HOMEOWNERSHIP. Investigating the why behind the buy Who's included? Young Gdalt Homeownership BORN (in 2014) AGES OVER THE YEARS 1979–1996 18-35 57 55 54 48 39 39 41 34 Did you know? of Millennials AGES 25-29 AGES 30-34 are currently homeowners 1982 2002 2007 2012 *U.S. Census Bureau *"The Subprime Generation," John Burns Real Estate Consulting OBSTACLES TO MILLENNIAL HOMEOWNERSHIP 1.Debt Ш1 70% 0% 43% of millennials say -of students- graduate with LO ANS - of millennials- feel very/fairly worried ABOUT GETTING OUT OF DEBT BEING DEBT-FREE is a sign of success Student loan debt-combined with credit card and other types of debt-changes their creditworthiness, which makes it tougher for Millennials to qualify for a mortgage. And paying off those debts makes it harder to make the mortgage payment if they do qualify. Viewing debt as a factor in their personal sense of accomplishment as they do, it's easy to see why Millennials aren't chomping at the bit to take on more debt in the form of a mortgage at this point. 2.Delayed Family, Formation Median Age at 1st Marriage *U.S. Census Bureau OVER THE YEARS 29.0 26.6 MEN WOMEN 26.825.1 22.8 20.3 24.7, 22.0 1960 1980 2000 2013 % Who Were Married at Age 18-32 Average Age at First Child: *Pew Research *Centers for Disease Control 2012 25.8 1980 65% 22.7 48% 36% 26% AND FIRST BIRTHS AMONG WOMEN 35-39 AND 40-44, MILLENNIALS GEN X BOOMERS MATURES (ESPECIALLY SINGLE WOMEN) CONTINUE TO RISE. More 18-31 Year olds Are Living Alone or with Roommates *U.S. Census Bureau 13 1968 1981 2007 2012 23 26 27 32 31 32 36 56 43 41 42 ROOMMATES/ LIVING AT HOME MARRIED LIVING ALONE HOMEOWNERSHIP IS STILL PART OF THE AMERICAN DREAM 74% 40% THINK OWNING A HOME IS STILL an important goal OF MILLENNIALS OF MILLENNIAL NON-OWNERS PLAN TO PURCHASE their first/next home within 5 years S0% OF MILLENNIAL HOMEOWNERS SAY OWNING A HOME IS ONE OF THEIR proudest accomplishments CONCLUSIONS A lot of this late start is stemming from the opportunity-if not the necessity-to experiment with other ways of living and keeping house in the meantime. By not channelling themselves into a single-family suburban home right away, many young people have become ensconced in urban lifestyles that will keep them away from the suburbs forever. This is already having an effect on their self-perception and definitions of success (including how the home looks and fits within that definition), which will need to be reflected in marketing communications and product and service offerings. But over the next 5-10 years, barring continued or increased job insecurity or financial instability, Millennials can be expected to get their late starts toward homeownership as they feel more comfortable putting down roots. As Jason Furman, Chairman of the White House Council of Economic Advisors, has articulated, "It's tempting to make sweeping statements that Millennials don't want to own anything and would rather rent it all-from cars on Uber to movies to Netflix to apartments on craigslist. I think there's a lot of more conventional, mundane explanations for what we've seen." the Created by The Futures Company futures company DESIGNED BY JACLYN SALEM SOURCE: The Futures Company. U.S. Yankelovich MONITOR Data, except where noted.

What's Going on with Millennial Homeownership?

shared by jaclynsalem on Dec 02
This infographic details the reasons why millennials are getting a late start on homeownership. Debt is certainly a factor, but other reasons such as significant delays in getting married and having c...


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