Young adults have waited longer than past generations to jump into homeownership. As they wait, that may have upped their expectations over what their home will look like for when they finally do take the plunge into ownership. Forty-five percent of millennials surveyed say they expect their first home to be their “dream home,” according to a new survey of 2,000 millennials between the ages of 22 and 37, released by Northshore Fireplace.
Millennials are willing to move to a different area to get this piece of their American dream, too. Sixty-five percent of millennials say they are willing to relocate to find a home they can afford, and 41 percent say they are willing to move to a different state.
But whether millennials will actually be able to afford their dream home from their first purchase may be questionable. Half of millennials surveyed say they have only $2,000 or less saved for a down payment. Millennials believe their first home will cost $218,152 (average). The median cost of an existing home in the U.S. is $249,500, according to the National Association of REALTORS®’ housing report, based on February data.
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).