21世紀房地產公司─朱永琪Yongqi Zhu《市場快報》

Millennials—The Home Buyers of Tomorrow

The 2014 California Association of REALTORS® Millennials Survey looked at those born between 1980 and 1996, or 18 to 34 year olds, who currently live in California. The Survey focused on renters and home owners and found that one in five are homeowners, 41 percent are renters and 36 percent live with their parents. When looking specifically at 18-26 year olds, the Survey revealed that nearly half (49 percent) live with their parents.

Demographically, they are very diverse—62 percent are minorities. This generation is known for delaying marriage and having children; the majority are not married and nearly half do not have children. They are, however, well educated; 46 percent of 27 to 34 year olds have a college degree and 42 percent of 18 to 26 year olds are currently enrolled in a college. Despite many having a higher education, their earnings and employment have some catching up to do. Only about half of echo boomers are currently employed, and only one-third have a full time job; 19 percent have a part time job, 24 percent are students and 20 percent are unemployed. This bleak employment situation translates to a median annual income of $35,000. There is a silver lining for earnings; older millennials (those between 27 and 34 years old) have a median annual household income of $50,000, compared to $30,000 for their younger cohort (18 to 26 year olds).

Renters

Approximately two out of five millennials are renters, paying a median monthly rent of $1,075. Affordable rent is the most important reason for electing to live in their current residence and also why the majority rent instead of buying—67 percent said they rent because they cannot afford to buy.

While they may not be able to afford to buy a home now, most Gen Y renters feel that homeownership is important because it gives them the freedom to do what they want with the property, and they expect to buy a property within the next five years.

Echo boomers in California prefer single family homes, as two out of three indicated they plan to purchase a single family home, compared to only 12 percent who plan to purchase a townhome or condominium. Contrary to popular belief, the ideal home for many would be on a big lot with lots of land (42 percent) in the suburbs (41 percent). Fewer than one in three indicated an urban location preference for their ideal home.

While they aspire towards home ownership, the majority are uncertain or doubtful they could obtain a mortgage now. Millennials are realistic about the responsibility that comes with the territory. Affordable home price, problems with credit/mortgages/taxes and maintenance are some of their biggest concerns about home ownership. About half of Gen Y renters have student debt, which is below $20,000 for many, so they do not feel it is preventing them from qualifying for a mortgage. However, the majority have other debt, such as credit cards and auto loans, which would make it difficult for them to buy a home.