Most millennials are waiting longer than earlier generations to get onto the housing ladder. But while they wait, many are upping their expectations about what their first home might look like. Indeed, some 45% of millennials confidently state their first home will also be their “dream home” when the time finally comes to buy.
The survey of 2,000 millennials aged between 22 and 37 was carried out by Northshore Fireplace, and found that most are willing to go to big lengths to find their dream home.
For example, 65% of millennials say they’re willing to relocate in order to find their perfect home, with 41% even prepared to move to another state.
The optimism is to be applauded, but the survey also found that many millennials will have trouble being able to afford such a perfect home. That’s because less than half of those surveyed actually have more than $2,000 saved up for a down payment. Millennials may also be underestimating how much their dream home might cost. According to the survey, most believe their first home will cost $218,152 on average. But the real median cost of an existing home at present is $249,500, according to data from the National Association of Realtors.
In a separate study by Porch.com, a home improvement website, millennial buyers were the most likely compared to other generations to pay more for must-have amenities. Many of the amenities they most sought out related to convenience or comfort, such as a private backyard or patio (they are willing to pay $7,009 more for a home with one); a swimming pool (they’d pay $6,346 more for one); central air conditioning and heating ($6,194); and solar panels ($5,469), according to the survey.
Some millennials may be willing to wait until they can afford their dream home. Their top fears delaying ownership: the burden of paying a mortgage (41 percent); unforeseen maintenance issues with the home (35 percent); being locked into one location by buying (17 percent); and the upkeep of the home (7 percent).