Are Millennials Shunning Homeownership?
O’Leary’s statement contradicts research conducted by Fannie Mae’s Economic & Strategic Research Group.
Fannie Mae’s National Housing Survey August Topic Analysis found a majority of Millennials saying owning a home makes more sense than renting. In fact, 91 percent of 18- to 34-year-old renters say they plan to own a home “at some point.”
The problem is money and credit. Millennials appear to be exercising caution when it comes to buying a home. Fifty-two percent of renters ages 25 to 34 cite personal financial reasons as the most important item to consider when thinking of when they would be ready to buy a home.
Thirty-four percent of these renters cite an income increase as the primary reason they may eventually be able to buy a home. And 24 percent say an increase in their credit score would be the difference between being able to buy a home or not.
When asked why they’re renting, 44 percent of 25- to 34-year-old renters say it’s because they’re preparing themselves financially to own.
These findings, published in August, match previous research from Fannie Mae’s Economic & Strategic Research Group showing Millennials want to own homes.
What do you think, do Millennials want to be homeowners? Or do they not, as Kevin O’Leary says, “give a poo-poo about owning a house?” Let us know in the comments below.
Estimates, forecasts and other views expressed in this article should not be construed as indicating Fannie Mae’s expected results, are based on a number of assumptions, and may change without notice. How this information affects Fannie Mae will depend on many factors. Neither Fannie Mae nor its Economic & Strategic Research (ESR) Group guarantees that the information in this article is accurate, current or suitable for any particular purpose. Changes in the assumptions or underlying information could produce materially different results. The ESR group’s views expressed in this article speak only as of the date indicated and do not necessarily represent the views of Fannie Mae or its management.