Posted 02/06/2018

New report: A third of adults plan to buy a home in next 5 years

buy a home

Aly J. Yale

The Mortgage Reports Contributor

Buy a home or bust

Rising home prices or not, it appears the American dream of homeownership is still very much alive. According to a new NerdWallet survey, 75 percent of U.S. residents say buying a home is a top priority, while 32 percent say they’ll actually buy one in the next five years.

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Buying ranks big with Millennials

NerdWallet recently conducted an online homebuyer sentiment survey in conjunction with Harris Poll. More than 2,000 U.S. adults weighed in.

According to the poll, about 15 percent of Americans said they purchased a house in the last five years, and another 32 percent say they plan to. For Millennials, buying a home is an even bigger priority, with 82 percent saying it’s important to them and 49 percent saying they’ll buy in the next five years.

“Eighty-two percent of Millennials (ages 18-34) say buying a home is a priority, compared with 75 percent of Generation X and 69 percent of baby boomers (55 and older),” NerdWallet reported. “Millennials also aspire to buy a greater number of homes, on average, throughout their lifetime and are most likely to say they’d like to buy a home to rent out for extra income.”

The 15 best states for Millennials to buy their first home

About 17 percent of Americans said they prefer renting. Price is the overwhelming No. 1 concern that keeps renters from buying, with 56 percent saying they don’t have the means to buy a home. Another 24 percent say they don’t want the financial commitment.

Still, rising prices don’t seem to be too much of a hold-up. The majority of those surveyed said they plan to put 20 percent down when they buy a home.

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Looking ahead

Both recent and soon-to-be buyers say they’re optimistic about the transaction. Sixty-four percent see their house as a solid investment opportunity for their future.

Before you making a 20 percent down mortgage payment, read this

Currently, about 28 percent of Americans feel better about their ability to buy a house this year, largely because of higher incomes and more savings. Twenty-three percent say they feel worse about their ability to buy.

But changing economic and political conditions could play a factor. About 35 percent said the current climate would make them more likely to buy a home, while an equal share said it would make them less likely.

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Aly J. Yale

The Mortgage Reports Contributor

Aly J. Yale is a mortgage and real estate writer based in Houston. Connect with her at AlyJYale.com or on Twitter

The information contained on The Mortgage Reports website is for informational purposes only and is not an advertisement for products offered by Full Beaker. The views and opinions expressed herein are those of the author and do not reflect the policy or position of Full Beaker, its officers, parent, or affiliates.

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