UNIVERSITY CITY, Mo.–Making “rash decisions” and buying homes in need of major repairs are just some of the things Millennials said they are willing to do in order to own a home, according to a new survey.
The survey, conducted by Real Estate Witch, a unit of Clever Real Estate, was conducted as the 2021 housing market was the most competitive in history and as would-be buyers were forced to go to unusual lengths to not just buy, but even bid on, properties.
The survey conducted by Real Estate Witch asked Millennials what they would be willing to do to own a home. The responses included buying a home sight unseen (90%), purchasing a fixer-upper that needs major repairs (82%), and offering over asking price (80%).
Maxing Out Budget
The most common way Millennials responded to the market was by increasing their budgets, with 46% expecting to max it out completely, according to the survey, which found that one-third (33%) plan to purchase a home that costs more than around $405,000 — the median U.S. home price.
“But desperate buyers who rush into home purchases are more likely to experience financial remorse,” stated Real Estate Witch. “About one-in-four Millennials who already own a home regret that their mortgage is too expensive.”
Specific Findings
Specifically, the survey of 1,000 Millennials found:
- 90% would buy a house sight unseen, a 10% increase from 2021.
- One-in-six Millennials would be willing to offer $100,000 or more above asking price for their dream home.
- 46% expect to max out their budgets when buying a home, with one-third (33%) planning to purchase a home that costs more than the median U.S. home price of about $405,000.
- Millennials (82%) are more likely than boomers (62%) to purchase a fixer-upper, but one-in-four who do so regret it.
- 82% of Millennials have more than $10,000 in savings — a 25% increase from last year — but one-third plan to put down less than 20% on their homes.
- 92% of Millennials have some debt. Of those, 70% have more than $10,000 in debt, and one-in-three owe more than $50,000.
- As Millennials spend less time at home, they want smaller homes — 1,700 square feet on average, compared to 2,400 square feet a year ago.
- More than half (51%) of all respondents feel stressed or anxious about homeownership, with more than 40% fearing a potential housing market crash.
- Nearly one-third of Millennials (31%) plan to live in their homes for less than five years.
- Millennials who are serious about purchasing a home are evenly split about when to buy: 42% are buying earlier than planned, and 42% delayed their plans to buy.
- Factors that influence Millennials’ desire to purchase a home include: 37% are motivated by the need to start a family, and 27% want to keep up with friends who are buying homes.
- 46% are buying a home because it’s a good investment.
- Millennials who are delaying their home purchase are doing so because they are worried about finding affordable homes (43%). Many have been priced out of the market or outbid by other buyers.
Additional findings and the full survey can be found here.