The so-called millennials now represent the largest generation group in the US property market. A recent survey reveals their homeowner aspirations and what exactly makes the ideal US property for the millennial generation.
Americans aged between 18 and 34 constitute the biggest sector in the US property market and as a result, are a force to be reckoned with in the industry. When targeting this giant population segment, estate agents, mortgage brokers, sellers and investors need to cater for their needs.
Actively looking to buy
The annual survey by TD Bank – Home Buyer Pulse Survey 2016 – reveals some interesting data both about millennials’ homeowner aspirations and the challenges in their way to buying a home. According to TD Bank, over one-fifth of would-be buyers are actively looking to buy.
21 per cent of all those interviewed for the survey claim they have plans to buy within the next year, a percentage that rises to 24 per cent within the millennial generation. As a result, this age group represents the biggest buyer group in the US property market.
Obstacles in their way
The survey also asks what the obstacles are in the way of buying US property for the millennial generation. Top of the challenges comes the need to save for a down payment. 74 per cent of millennials say they cannot buy a home because of lack of funds for a deposit.
Student debt also represents a stumbling block for millennials looking to buy property. Nearly 60 per cent of those interviewed state that debt is preventing their dreams of homeownership.
Ideal home for millennials
In addition, the survey provides a profile of the ideal US property for the millennial generation. The overwhelming majority aspire to buy a single-family home with just 12 per cent looking to buy an apartment. Single-family homes turn out to be the preferred type of property across all age groups in the survey.
The millennial generation wants to buy US property that is move-in ready with very few interested in new-build homes or properties requiring refurbishment (the so-called ‘fixer uppers’). This result may reflect the shortage of new homes available – the US property market currently has an acute lack of new residential construction.
Top of their priorities regarding location are the suburbs. Nearly half of the millennials interviewed expressed a preference for living in suburban areas with a quarter opting for the city centre. This mirrors a nationwide tendency among Americans, particularly those renting property.
Hand-in-hand with suburbia living, millennials look for proximity to good schools and childcare – a priority for 57 per cent of those interviewed. Being near green areas such as parks and water comes a close second.
When it comes to specific characteristics of US property for the millennial generation, attractive design wins hands down as the most important aspect. Nearly 80 per cent say that the property must appeal to them. Actual amenities such as a back yard or pool are also essential with 62 per cent giving priority to these.
“The millennials are a major force in the US property market both as buyers and renters,” says Dies Poppeliers, Managing Director of BRIC Group. “The fact that they’re actively looking to buy but are hampered by lack of a deposit makes buy-to-let US property for the millennial generation an attractive investment option.”
BRIC Group, an investment company specialising in global real estate opportunities, offers US real estate investments including turnkey properties in Florida and Houston, and land plots in Florida. BRIC Group is also developing The Coral resort, in Northeast Brazil, a luxury beachfront resort with land and villa investment opportunities. BRIC Group has been creating wealth for its clients since 1996 and has offices in Brazil, Dubai (consulting office), Hungary, Spain and the US.
(Source: TD Bank)