Real estate is the latest industry to undergo a paradigm shift thanks to the changing attitudes of millennials. A nationwide survey conducted by Bank of America revealed that young potential homebuyers are far more hesitant to purchase a traditional starter home as a placeholder until their dream home becomes available (and affordable).
Is this refusal to settle a result of the perceived notion that millennials are defined by their sense of entitlement? According to the National Association of Realtors, the share of first-time buyers dropped to 30% in February, down 10% from its usual 40% average.
And while shrinking wages and suffocating student debt certainly play a role in the decline, perhaps there is something more at play.
“What the report brings out is the shift in how millennials are thinking about homeownership,” said D. Steve Boland, a consumer lending executive at Bank of America. “A home is much more of an emotional decision and a life priority decision. Is this a place where I may ultimately want to retire?"
Millennials have made a habit of rejecting certain societal norms that previous generations subscribed to. Marriage, starting a family, and now buying a home have all taken a back seat to career ambitions.
According to the survey, 35% of potential homeowners want their first home to also be their last, while over half the respondents are holding off buying until they can afford the home of their dreams.
John Schleck, senior vice president at Bank of America, observed that millennials are approaching homeownership with “a level of maturity and conservatism,” two words not often associated with the so-called “me generation.”
“They don’t want to just buy a house,” Schleck added. “They want to stay in a house.”
Light up your first home with this fabulous floor lamp.
What’s preventing you from buying your first home? Let us know in the comments below!