Forward-thinking millennials are buying homes – and they are
happy about it. While “dreamers” reported last year that they
wanted to skip the starter home, Bank of America’s second annual
Homebuyer Insights Report revealed that millennials who have taken
the plunge into homeownership are buying the house they can afford
now and looking ahead to their ideal home in the future. In fact, a
large majority (68 percent) of millennial homeowners say their
current home is a “stepping stone” to their forever home.
“After years of seeing millennials sit on the sidelines, it’s
clear some are recognizing it might not make sense to wait,” said
D. Steve Boland, Consumer Lending executive for Bank of America.
“We talk to younger buyers every day about homeownership, and they
understand the benefits it can have on their long-term finances.
They’re excited to get started but are taking a thoughtful approach
by improving their credit and building their savings.”
Millennial homeowners are confident they made the right decision
in buying. Nearly 80 percent report homeownership has had a
positive impact on their long-term financial picture. A similar
number (86 percent) believe owning a home is more affordable than
renting. This is in sharp contrast to those consumers who have not
yet purchased a home, as they are split on what’s more affordable:
54 percent say owning, compared to 45 percent who say renting.
In further defining homeownership, these 18- to 34-year-old
owners are more likely than any other generation to associate it
with adulthood (39 percent), and least likely to define it as the
American dream (16 percent) and permanence (11 percent).
When looking back at their homebuying experience, current owners
across generations would tell their younger selves to start saving
sooner (60 percent), consider the maintenance costs and unexpected
expenses (42 percent), and create and stick to a budget (35
percent). Twenty-one percent say buy early to build equity.
Prospective buyers are planning, but not pulling the trigger
yet
While they are juggling a variety of financial priorities,
including paying off debts and bills (61 percent), improving credit
scores (47 percent) and paying off student loans (32 percent),
nearly one in four prospective buyers see homeownership on the
horizon, saying they will purchase their first home within the next
two years. Furthermore, 35 percent say they have started to plan
for a down payment.
Almost half of first-time buyers believe they need 20 percent or
more of a home’s price for a down payment, which may be why just 21
percent think they can currently make one.
“Some prospective first-time homebuyers tend to believe their
personal circumstances should line up perfectly, or that they need
a 20 percent down payment. Yet there are many ways homebuyers can
achieve responsible and sustainable homeownership much sooner than
they think,” said Boland.
Experienced buyers say value of homeownership goes beyond
dollars and cents
Just one-third of owners say a home’s value is determined by how
much it cost to purchase. Beyond financial value, current
homeowners also see clear emotional benefits of homeownership, as
nearly all say they are proud of owning (95 percent) and treasure
the memories they have made (91 percent). Only 21 percent say
owning a home is a burden.
Furthermore, the majority (82 percent) of experienced buyers
look for ways to make their current home more valuable, and 70
percent spend a lot of free time working on their home.
For additional information about the Bank of America Homebuyer
Insights Report, visit www.bankofamerica.com/homebuyersreport. For
information on home financing, visit
www.bankofamerica.com/mortgage/home-mortgage.
Bank of America Consumer LendingBank of America’s Consumer
Lending unit includes First Mortgage, Home Equity, Merrill Lynch
Banking, and Consumer Vehicle Lending. Each business is focused on
delivering a distinctive and consistent client experience through
competitive product offerings, quality loan production, choice of
multiple connection and delivery methods, and operational
excellence based on a client’s unique attributes and relationship
with us.
About the Bank of America Homebuyer Insights ReportThis survey
was conducted by GfK Public Communications and Social Science,
using GfK’s KnowledgePanel®, which yields results that are
statistically representative and projectable to the American
population. The survey was conducted online January 24–February 2,
2017. A total of 4,906 adults age 18+ were surveyed, including
1,268 current homeowners and 435 prospective homeowners. In
addition, an augment was conducted to achieve 300 adults in 10
local markets: Boston, Charlotte, Chicago, Dallas, Denver, Houston,
Phoenix, Miami, St. Louis, and New York. The margin of sampling
error for national data is +/- 3.0 percentage points.
Bank of AmericaBank of America is one of the world's leading
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of banking, investing, asset management and other financial and
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approximately 4,600 retail financial centers, approximately 15,900
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million active accounts and nearly 22 million mobile active users.
Bank of America is a global leader in wealth management, corporate
and investment banking and trading across a broad range of asset
classes, serving corporations, governments, institutions and
individuals around the world. Bank of America offers
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owners through a suite of innovative, easy-to-use online products
and services. The company serves clients through operations in all
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Puerto Rico and more than 35 countries. Bank of America Corporation
stock (NYSE: BAC) is listed on the New York Stock Exchange.
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version on businesswire.com: http://www.businesswire.com/news/home/20170412005348/en/
Reporters May Contact:Terry Francisco, Bank of America,
1.213.345.9024terry.h.francisco@bankofamerica.comKris Yamamoto,
Bank of America, 1.805.526.1910kris.yamamoto@bankofamerica.com
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