Jun 29, 2015
The millennial population (Generation Y) may not be buying houses just yet, but according to a recent survey by the Urban Land Institute (ULI), around 70 percent plan to own a home by 2020.
ULI defined millennials as individuals ranging in age from 20 to 37 years old, consisting of 78.6 million members.
Currently, of those surveyed, 50 percent are renters, and of those 50 percent, 60 percent rent apartments or townhouse-style units, while 40 percent rent single-family units or mobile homes. Of the renters, two-thirds say they are either satisfied or very satisfied with renting.
With median rent coming in at $925 a month, most cannot afford more luxurious places. Of those surveyed, 27 percent of renters have an unrelated roommate.
Surprisingly, only 13 percent of Gen Yers live in or near downtowns, with 35 percent residing in “other city neighborhoods.”
Additionally, 69 percent said they paid for their living expenses with no help from their family.
There are still 16.5 million members, or 21 percent, who still live at home with their family, and 14 percent of those live in a home with three generations of family members. Ninety percent expect to match or exceed their parents’ economic circumstances.
While more than two-thirds of this generation expect own a home by 2020, 45 percent say they aren’t convinced housing is a good investment. However, of those surveyed, 26 percent already own a home.
“Generation Y represents the largest source of new demand for rental housing and first-time home purchases,” the survey concluded.