Most real estate experts, when asked why people are not buying homes anymore, are quick to point to problems with the economy and the debate about whether the housing market has bottomed out or not.
But, according to a recent poll by The Nest at least, this is not the main reason why first time buyers are deterred. In fact, there are far more obvious reasons why young couples are staying on the sidelines.
For instance, most young people simply cannot afford the down payment that is required by most mortgage lenders these days. And more to the point, many younger people simply haven’t decided where they want to live right now. So you can see, it’s not really the current state of the market that is putting them off.
The poll may not have been the most intensive or the most scientific, but nevertheless it provides an insight into one of the key demographs of housing – young couples who are starting, or about to start raising a family.
Out of 1,437 young people who were polled, just over 2% of them gave waiting for the housing market to recover as a reason for not buying now. Instead, the most popular reasons for not wanting to own a home yet included saving up for a down payment (36% of respondents) and being unsure where they wanted to live (32% of respondents).
Although a large majority of those polled were interested in ultimately owning a home, only 68% agreed that home ownership was a key part of the American Dream, or a way of showing that they had become successful. However, on the upside, most young people still think real estate is a good investment, with 92% agreeing to that statement.
In all, only 6% of the people polled said that they had no interest in ever buying a home. Most people said that they were hopeful of getting on the housing ladder within the next five years, with 16% saying they hoped to buy in just one year.