Wednesday, October 24, 2012

Young Buyers Feel Smart About Home Ownership

More than three-quarters of Americans who fall within Generations X and Y believe they have become increasingly knowledgeable about home ownership due to the greater media coverage on the real estate market the past six years, according to a Better Homes and Gardens Real Estate survey of about 1,000 18-35 year olds.
These two generations say that before buying they’d do their homework first, researching interest rates, home prices in a desired neighborhood, and the ability to secure a loan. Despite the past housing crisis, these generations say they are not deterred from home buying, and 75 percent say that home ownership is a key indicator of success.

They also know that paying their own mortgage is actually cheaper than renting in most markets, and overall a much better investment than paying someone else's mortgage.
Generations X and Y, which boast 103 million of the population, are viewed as major drivers of the economy for the next 30 years. 
Among some of the survey’s findings about Generation X and Y’s perceptions on home ownership is: 
  • 71% of Gen X and Gen Y surveyed say that home ownership is not something they deserve but rather something you must earn, and they say they’re willing to sacrifice in order to be able to buy a home one day. Sixty-two percent say they would save by eating out less, 40 percent are willing to take a second job, and 23 percent would move back home with their parents. 
  • 75% say owning a nice home is an indicator of success over taking fancy vacations, owning an expensive car, or owning designer clothing. 
  • 61% say they’ll be ready to buy when they’ve landed a secure job. 
"Every generation faces defining economic events that alter their collective perspective," says Sherry Chris, president and CEO of Better Homes and Gardens Real Estate LLC. "'The Greatest Generation' was shaped by the Great Depression and Baby Boomers were impacted by the oil crises throughout the 1970s. Gen X and Gen Y experienced their 'coming of age' moment during the largest housing market downturn in American history. As such, these generations believe that the details, risks and rewards of home buying are integral to their planning.”