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Millennials and money: These homebuyers’ habits aren’t as bad as they seem

Aly J. Yale
The Mortgage Reports contributor

Millennial money habits

It turns out Millennials aren’t as bad with money as most assume. In fact, according to a new report from Bank of America, the Millennial generation is actually just as good — if not better — at managing their money than past cohorts were.

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Displaying financial responsibility

According to the 2018 Better Money Habits Millennial Report from Bank of America, most Millennials feel financially secure, are setting savings goals and are comfortable asking for raises — all signs of fiscal responsibility.

“Millennials deserve more credit — both from themselves and from others — for their mindfulness when it comes to money and their lives,” wrote Andrew Plepler, global head of environmental, social and governance at Bank of America. “Let’s not forget, many Millennials entered the workforce during the most severe economic downturn since the Great Depression. However, they seem to have weathered the storm quite admirably.”

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The survey found that 57 percent of Millennials have a savings goal — more than both Generation Xers and Baby Boomers. Over 60 percent of them are actively working toward those goals. Another 59 percent feel financially secure, and 54 percent are budgeting in their daily lives.

For Millennials, homeownership is more important than marriage, kids

Homebuying potential

According to the survey, 47 percent of Millennials have $15,000 or more in savings, while 16 percent have at least $100,000. That could translate into a hefty down payment — despite today’s higher home prices.

In fact, according to Odeta Kushi, senior economist at First American, Millennials will likely make up a large share of homebuyers come 2019.

“The largest cohort of Millennials will be turning 29 next year, entering peak household formation and home-buying age, and contributing to the increase in first-time buyer demand,” she said.

Considering Millennials are pretty comfortable asking for a raise, and there could be even more homebuying power down the line. The Bank of America survey showed 46 percent of Millennials have asked for a raise in the last two years. A whopping 80 percent of those got their wish. More Millennials have asked for a raise recently than Gen Z, Gen X and Baby Boomers.

Millennial credit scores aren’t perfect, but they’re still buying homes

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Are you a Millennial looking to buy a home in 2019? Then shop around and see what mortgage rates you qualify for today.

Verify your new rate (Dec 11th, 2018)