Dive Brief:
- A NerdWallet survey found that 20% of adults between ages 18 and 34 — 34% of millennial men and 10% of women — said the fear of a long-term commitment to their partner and a mortgage was a factor keeping them from buying a home.
- The study, which surveyed 2,000 U.S. adults over 18, found that only 4% of respondents had the same fear of a long-term commitment.
- Across all ages, 71% of respondents said they had fears about homebuying, with home repairs, high purchase and upkeep costs, and the long-term commitment dominating those concerns.
Dive Insight:
Millennials continue to elude homebuilders, as a significant portion of the younger generation is delaying major life steps — such as starting a family and buying a home — after being rocked by the recession and weak job market. Many residential industry stakeholders expected a major influx of first-time buyers entering the market last year, but that surge did not come to fruition.
Experts have blamed millennials for a significant portion of the persistently low homeownership rate in the U.S., as student loan debt and delays in starting families have pushed the 18-34 age group's homeownership level to a historic low of 34.1%. Last week, the Census Bureau reported that the second-quarter U.S. homeownership rate slipped from 63.5% in the first quarter to 62.9% — its lowest level since 1965.
Reports have found that millennials aren't just stuck in the rental sector, as a major percentage of them haven't yet left the nest. A February National Association of Home Builders report found that as of 2014, more than 20% of young adults ages 25 to 34 — or 8.8 million — lived with their parents or parents-in-law, up from 12% — or 4.6 million — in 2000. If that age group's homeownership rate were at the 2000 level, there would be 2 million more households of young adults playing a significant role in the slowly recovering housing market.
