There’s no getting around it: millennials often get a bad rap. We’re entitled, shallow, self-centered...you know the drill. But, as it turns out, most millennials want to own multiple homes as they age — and they’re planning ahead financially in order to achieve this goal.
According to a recently released report from Bank of America, millennials plan to own more than one home during their lifetimes. 68% say that their current property is a stepping-stone toward the house they hope to someday call their own. And although our generation has a reputation for being perennial renters, it turns out that over one-third of millennials are already homeowners.
According to Bank of America’s report, “older” millennials (those between the ages of 25 and 34) are planning ahead in a major way. 40% have already started saving for a down payment. Of course, like most aspects of “adult life,” there’s a learning curve and many first-time buyers aren’t sure exactly how much a down payment will set them back. (The answer is nuanced, but hopeful homebuyers should plan on a down payment of 20%.)
The report also outlined the most influential factors that determine when prospective buyers decide to take the leap and become homeowners. Unsurprisingly, “having the financial means to purchase” takes the top spot, followed by “wanting a place to call my own” and “having a steady job with steady income.”
"If there’s one thing to take away from our report this year, it’s that forward-thinking millennials are buying homes – and they’re happy with their choice," Bank of America’s Steve Boland says in the report. "This growing group of millennials is seeing the value of getting into a home...Clearly, the millennial generation is coming of age and realizing it might not make sense to wait anymore to purchase their first home."
79% of millennial homeowners say that owning a home benefits their financial present and future, while 86% report that it’s more affordable than renting.
By the looks of it, many millennials are on track to achieve their goal of owning multiple homes throughout their lifetimes.