LONDON–Nearly half of all non-home-owning Millennials say they are saving for a house of their own, while 12% said they have abandoned any plans of ever being a homeowner, according to a new study.
The study, conducted by Legal & General Group, found that of the 48% of non-homeowner Millennials who are saving for a down payment:
- 55% of those who are saving can’t afford to buy yet
- 12% of Millennials abandoned their plans to buy a home
- 13% of Millennials considering a COVID-driven move want to be nearer to family; 8% wanted to move away from family
- The attitude of many is “Thanks, Boomers”
The findings were revealed in the fourth part of a broad new study conducted by Legal & General Group titled “U.S. Millennials and Home Ownership – A Distant Dream for Most, is released, diving into the deeply-held grudge millennials hold against Baby Boomers in particular for thwarting their home buying plans.
‘Mind the (Other) Gap’
This fourth segment of the data-rich study, Mind the Gap: The Intergenerational Home Ownership Blues” looks at the skyrocketing cost of housing and how changing intergenerational housing needs and other unseen factors are contributing to the reality of housing unattainability for many Millennials.
“With longer healthy life expectancies than ever before, Baby Boomers are deciding to downsize but remain in privately owned housing, putting a strain on affordable housing stock just as the younger generation of home buyers want to buy starter houses,” the analysis states. “While the long-term consequences of these demographic shifts are still unfolding, the study found other factors exerting added pressure on the housing market, including institutional investment.”
Legal & General, a 200-year-old financial services firm that says its purpose is to “improve the lives of our customers, build a better society for the long term and create value for our shareholders,” further noted its study looks not only at the intergenerational housing gap, but also at demographic choices based on age and life stage, and at various drivers shaping these choices, including corporate investment and the rising cost of housing. The next segment of the study will look at the role of student loans and medical debt in hindering Millennials in their home ownership quest.
‘Worsening’ the Imbalance
“The severe shortage of affordable housing in the U.S., as well as the disproportionate amount of wealth held by older generations, significantly mirrors what we’re seeing in the U.K.,” said Legal & General Group CEO Nigel Wilson. “Beyond older generations staying put in their own homes or being in a more competitive position to purchase starter-size smaller homes as they downsize, we see other market forces at work which are worsening the supply-demand imbalance. In the U.K. at Legal & General, as part of the solution to this imbalance, we are building a larger stock of affordable homes for first time buyers to purchase, as well as creating more opportunities for ownership through rent-to-buy programs.”