Kathy Cummings: May 18, 2017

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MILLENNIAL HOMEOWNERS’ ADVICE TO PEERS:

GET OFF THE SIDELINES

Second Annual Bank of America Survey Explores Homebuying Trends and Behaviors

KATHY CUMMINGS, SVP
Homeownership Solutions at Bank of America

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.

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.

Bank of America’s Senior Vice President, Kathy Cummings, is available for live interviews to discuss the highlights of the survey results and to educate your listeners about their finances, specifically as it relates to buying and saving for a home.

Highlights from the report include:

  • Millennial homeowners are more likely than any other generation to associate homeownership with adulthood (39 percent), and least likely to define it as the American dream (16 percent) and permanence (11 percent)
  • 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.
  • 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.
  • 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.
  • Current homeowners across generations 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.

For more information please visit:  www.bankofamerica.com/homebuyersreport

MORE ABOUT KATHY CUMMINGS:

Kathy Cummings is the Affordable Housing Programs Executive for Bank of America Home Loans Neighborhood Lending team.

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