Inflation Has Impacted 92% of Millennials' Home-Buying Plans

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Jan 19, 2023, 08:33 ET

With 80% of millennial home buyers in debt, buying a home could be indefinitely delayed for many.

ST. LOUIS, Jan. 19, 2023 /PRNewswire/ -- Debt and inflation are unrelenting barriers to the dream of homeownership for millennials, according to a new survey from Real Estate Witch, an online publication that connects readers with expert real estate advice, owned by Clever Real Estate.

Clever polled 1,000 millennials looking to buy a home in the next year and found that more than 9 in 10 (92%) say inflation has impacted their home-buying plans, with more than 1 in 4 (28%) delaying their home search due to it.

What are your biggest barriers to homeownership?

What do you consider deal breakers for homes in your price range?

The real estate market has clearly changed in the past year. Just 29% of millennials now say buyer competition is an obstacle, compared to 59% in 2022. Now, nearly half (47%) ranked high interest rates as their No. 1 concern.

62% of millennial home buyers say they plan to put down less than 20% on a home. Only 34% of millennials did the same in 2022, further showing a significant shift in the market.

It's no surprise millennials can no longer afford heftier down payments — more than half (54%) have less than $10,000 in savings, a percentage that has tripled since 2022, when only 18% of millennials had that little. 20% have no savings at all.

More than half of millennials (53%) say they can't currently afford a home, with most (41%) citing not having money for the down payment as the primary reason. 1 in 3 (37%) worry that they may not even qualify for a mortgage.

3 in 4 millennials (71%) say home buying has caused them stress, and 44% say it has negatively impacted their personal relationships. A majority of millennials (51%) have even been reduced to tears during the home-search process.

Of millennials who already own a home, 82% have regrets about their purchase. The most common regret among millennial homeowners is that their interest rate is too high (22%).

Millennials still in the market for a home are not overly optimistic — 3 in 4 (76%) think market conditions will worsen before they buy a home.

Despite 77% of millennials believing buying a home is still part of the American Dream, more than 1 in 3 (37%) don't think it's attainable for the average American.

Read the full report at: https://www.realestatewitch.com/2023-millennial-home-buyer-report/

About Real Estate Witch

Real Estate Witch is a web property of Clever Real Estate, an online platform that connects home buyers and sellers with top-rated agents at a discounted rate.

Please contact Alyssa Evans at [email protected] to be connected with a researcher with any questions or for an interview.

CONTACT:
Alyssa Evans
Clever Real Estate
315-690-1518

SOURCE Real Estate Witch