THE HOME BUYERS OF TOMORROW September 8, 2016 Azad Amir-Ghassemi Research Analyst
METHODOLOGY Online Only Survey conducted from January 2016- February 2016 1871 respondents: 633 Emerging Millennials (18-25); 686 Older Millennials (26-33); 552 Gen-Xers (33-39) Respondent quotas were matched to Census ACS 2014 rates based on race/ethnicity, renter/owner occupied housing status Post-survey stratified weighting was applied due to male undersampling
CALIFORNIA HOUSING PRICE INDEX Index 1980:Q1 = 100 70 60 50 40 30 20 10 SERIES: All-Transactions House Price Index for California [CASTHPI] SOURCE: US. Federal Housing Finance Agency
CALIFORNIA HOMEOWNERSHIP RATE 62 60 58 56 54 52 50 SERIES: Homeownership Rate for California [CAHOWN] SOURCE: US Census Bureau
CA HOMEOWNERSHIP RATE BY AGE 8 7 6 70 + 52-70 37-51 24-36 5 4 SOURCE : Census ACS 2014 1-year IPUMS U. MINNESOTA 2005 2008 2010 2012
BUT IS THERE HOPE?
CHANGE IN US INCOME DISTRIBUTION
CALIFORNIA
BUT IS THERE HOPE? Recession Job Losses: 8.8 million Since Jan 10: +14.0 million MONTH TO MONTH CHANGE 800,000 600,000 400,000 200,000 0-200,000-400,000-600,000-800,000-1,000,000 SERIES: Employment Growth SOURCE: US Bureau of Labor Statistics
JOB GROWTH, CALIFORNIA LEADS NATION ANNUAL PERCENT CHANGE 6 California US 4 2 2.3 1.7 0-2 -4-6 -8 SERIES: Total Nonfarm Employment SOURCE: US Bureau of Labor Statistics, CA Employment Development Division
FUTURE OF CALIFORNIA Large Differences Across Ethnicities
CALIFORNIA POPULATION AGE COHORTS 7.6 M Millenials 7.4 M Gen-X 7.6 M Boomers 0 25 50 75 AGE SOURCE : Census ACS 2014 1-year IPUMS U. MINNESOTA
CALIFORNIA WHITE POPULATION AGE COHORTS 1.9 M Millenials 2.8 M Gen-X 3.1 M Boomers 0 25 50 75 AGE SOURCE : Census ACS 2014 1-year IPUMS U. MINNESOTA
CALIFORNIA HISPANIC POPULATION AGE COHORTS 4.3 M Millenials 2.3 M Gen-X 1.5 M Boomers 0 25 50 75 AGE SOURCE : Census ACS 2014 1-year IPUMS U. MINNESOTA
CALIFORNIA BLACK POPULATION AGE COHORTS 0.33 M Millenials 0.60 M Gen-X 0.39 M Boomers 0 25 50 75 AGE SOURCE : Census ACS 2014 1-year IPUMS U. MINNESOTA
CA HOMEOWNERSHIP RATES BY RACE / AGE 8 24-36 37-51 52-70 6 ASIAN BLACK HISPANIC WHITE 4 SOURCE : Census ACS 2014 1-year IPUMS U. MINNESOTA 2005 2008 2010 2012 2005 2008 2010 2012 2005 2008 2010 2012
WHO ARE MILLENNIALS Household Characteristics
AGE DIFFERENCE MATTERS - ADULT VS. EMERGING MILLENNIALS What is your age? n: 1319 mean : 25.83 median: 26 6% 4% 2% Split Millennials into two categories "Under 25" and "26-33"
RESPONDENT DEMOGRAPHICS : EDUCATION 3 2 What is the highest level of education you have completed? n: 1319 18% 3 29% 1 3% 6% 8% 5% 2%
EMERGING MILLENNIALS ARE STILL IN SCHOOL 2 What is the highest level of education you have completed? n: 1319 35% 3 Emerging Adult 25% 25% 22% 36% 1 4% 1% 12% 4% 7% 8% 9% 7% 2% 2% 1% 1%
HALF OF MILLENNIALS ARE SECOND GENERATION Were your parents born in the United States? n: 1319 5 52% 4 3 39% 2 1 9%
PARENT PLACE OF BIRTH SPLIT BY WHITE/BLACK AND ASIAN/LATINO Were your parents born in the United States? Split By Ethnicity; n: 1301 ASIAN WHITE 75% 5 78% 87% 25% 1 LATINO 12% 8% 5% BLACK 75% 85% 5 56% 25% 33% 11% 2% 13%
SELF-REPORTED HOUSEHOLD INCOME What is your annual household income? n: 1038 mean :$ 70500 median :$ 49000 2 24% 27% 1 15% 14% 9% 7% 3% 1%
HOUSEHOLD INCOME VARIES DRAMATICALLY BY RENTER / OWNER What is your annual household income? n: Renter: 518 Owner : 520 Median Renter HH Income :$ 25000 Median Owner HH Income :$ 55000 Mean Renter HH Income :$ 31500 Mean Owner HH Income :$ 136100 34% 3 31% Owner Renter 2 1 14% 18% 17% 14% 18% 11% 14% 6% 13% 3% 5% 1% 2%
WHO ARE MILLENNIALS Homes / Living Situations
EMERGING VS. ADULT MILLENNIALS REPRESENT DIFFERENT POPULATIONS Emerging (18-25) and Adult Millennials (26-33) are in different life stages, different living situations, and express different housing behaviors and needs. Emerging Millennials are much more likely to live with family, are less familiar with the local and state housing market (rental and purchase). Adult Millennials who live at home, are more likely to live in renting households.
EMERGING VS ADULT MILLENNIALS GENERAL INFORMATION 37% of all Millennials live with family (with parents / grandparents). 47% of Emerging Millennials live at home. But only 26% of Adult Millennials do.
37% OF ALL MILLENNIALS LIVE WITH FAMILY 8 What is your living situation? Split by Millennials Living with Family, N: 1319 6 63% 4 2 37% With family means living in the home of parents / grandparents / other family
47% OF EMERGING MILLENNIALS LIVE WITH FAMILY, V. 26% OF ADULT MILLENNIALS 8 What is your living situation? Adult vs Emerging Millennials by Family Type n: 1319 Emerging Adult 6 72% 4 53% 47% 2 28%
WHO DOYOU LIVE WITH By late 30s, 59% will live with a spouse / partner Across all age groups, a low percentage indicate living with parents 14% of Emerging millennials live with roommates, v. 4% of younger Gen-Xers 14% of Emerging millennials live alone, v. 22% of younger Gen-Xers Respondents can answer yes to multiple types so will not sum to 10
35% OF ALL MILLENNIALS LIVE WITH A SPOUSE; 17% LIVE ALONE; 11% LIVE WITH 'ROOMMATES' 4 3 What is your living situation? N: 1319 37% 35% 2 1 16% 11% 7% 7% Can answer yes to more than one option - ie. live with parents and with spouse
% LIVING ALONE RISES, % LIVING WITH FAMILY DROPS, % LIVING WITH A SPOUSES RISES FAST 6 4 What is your living situation? Detailed N: : 1319 48% 59% 47% Emerging Adult Younger Gen-X 2 21% 28% 17% 14% 18% 22% 14% 8% 4% 8% 6% 6% 7% 6% 4%
MILLENNIALS 'LIVING WITH FAMILY'S' OWNERSHIP STATUS ~42% of all Emerging and Adult Millennials (both living With Family, and not) live in owner-occupied housing Emerging and Adult Millennials living 'With Family' as likely to be in owner-occupied housing 53% of Adult Millennials with Family Live in owneroccupied housing 58% of Emerging Millennials with Family Live in owneroccupied housing
42% OF RESPONDENTS LIVE IN OWNER OCCUPIED HOUSEHOLDS 8 What is the current housing situation of the household or place you are in? n: Renters: 722, Owners: 597 6 4 42% 58% 2
RENTERS ARE MORE LIKELY TO LIVE ALONE 4 Do any of these options fit your household? Split by Renter / Owner; n: 1319 4 Owner Renter 3 33% 32% 2 1 11% 2% 1 4% 23% 18% 15% 5% 8%
MILLENNIAL WHO DO 'NOT LIVE WITH FAMILY'S' HOUSEHOLD OWNERSHIP STATUS Adult Millennials not living at home are slightly more likely to be home-owners. Most Millennials who do not live with their families Rent. 29% of Emerging Millennials Own, v. 37% of Adult Millennials. But! Remember that there are more adult millennials who do not live at home.
NOT LIVING WITH FAMILY : ADULT MILLENNIALS MORE LIKELY TO OWN THAN EMERGING 8 6 What is the current housing situation of the household or place you are in? Millennial Respondants, 'Not Living with Family N: Adult Millennials: 522 Emerging Millennials: 330 Emerging Adult 71% 63% 4 2 29% 37% But remember there are also many more Adult millennials living on their own than Emerging millennials!
MILLENNIALS: THEIR HOMES
MOST LIVE IN SINGLE FAMILY HOMES 5 4 3 2 What type of home do you reside in? n: 1319 52% 31% 1 1 4% 2% 1%
6 OF MILLENNIALS WHO LIVE WITH FAMILY, LIVE IN SFHS What type of home do you reside in? Split By Region; n: 1319 6 Not with Family With Family 4 2
CURRENT HOME LOCATION 5 4 3 2 What best describes your home's location? n: 1319 48% 28% 1 11% 1 3%
55% OF MILLENNIAL HOUSEHOLDS HAVE BEEN LIVING IN A PLACE 3YEARS OR LESS 3 2 How long have you lived in your current home?? n: 1319 25% 31% 1 12% 8% 8% 6% 1
RENTERS MOVE MORE FREQUENTLY 3 2 How long have you lived in your current home?? n: 1319 33% 25% 36% Owner Renter 1 14% 13% 11% 1 7% 12% 4% 11% 2% 15% 7%
MILLENNIALS EITHER HAVE LIVED WITH FAMILY FOR A LONG TIME, OR BY SELVES FOR SHORT PERIODS 4 3 How long have you lived in your current home?? n: 1319 Adult Mill'n not w/ Family Adult Mill'n w/ Family Emerging Mill'n not w/ Family Emerging Mill'n w/ Family 2 1
BELIEF IN AMERICAN DREAM / HOMEOWNERSHIP
AMERICAN DREAM How important is fulfilling the 'American Dream' to you? Please answer on a scale of 1 to 5, with 1 being not at all important and 5 being very important? n: 1270 3 34% 31% 2 25% 1 4% 6%
AMERICAN DREAM - MOST IMPORTANT FACTORS Which factors contribute to your ideal of the `American Dream` Select All That Apply n: 1319 15% 1 17.8% 17.5% 16.4% 13.9% 12.5% 11.4% 10.4% 5%
IS PURCHASING A HOME A SAFE INVESTMENT? FOR ALMOST ALL RESPONDANTSYES 4 3 2 Do you believe that purchasing a home is a safe investment? n: 1208 45% 37% 1 1% 5% 12%
OWNERS QUESTIONS House Purchase Characteristics
FIRST TIME BUYER Millennial Owners - Was this your first house purchase? n: 225 8 85% 6 4 2 15%
ORIGINAL PURCHASE PRICE - MILLENNIAL BUYERS What was the original purchase price of the house? Millennial Personal Purchase Price n: 225 mean : 1147200 median : 350000 15% 1 5%
VALUE CHANGE Are you waiting for your home value to increase to a specific amount before selling? n: 225 15% 1 5%
HOW LONG DOYOU PLAN TO KEEP THIS HOME How long do you plan to keep this home? n: 225 3 35% 2 19% 1 12% 1 1 9% 1% 5%
MOST IMPORTANT REASON FOR PURCHASE 2 What was the most important reason for buying this home? n: 255 23% 15% 1 5% 15% 12% 12% 9% 9% 5% 3% 3% 3% 3%
FAMILY SUPPORT
HOME PURCHASE : PARENTAL HELP WITH MILLENNIAL RENTER 21% of Millennial Renters say that family has offered to help with home purchase. No reported difference between Renters living by themselves and those living with family.
RENTERS : OFFER OF PURCHASE HELP FROM FAMILY 8 Have your parents or other family offered to help with a home purchase? Answered Yes to Either Help With Downpayment or Mortgage : n: 324 8 6 4 2 2
MILLENNIALS - HOME PURCHASE HELP FROM PARENTS California home-buyers get help from their parents into their 40s to purchase Parental help varies widely among ethnic groups Non-white parents with the means to help, do while children are younger
OWNERS : PURCHASE HELP FROM FAMILY Did your parents or other family provide financial support with any of your home purchases in the past? Owners : Answered Yes to Either Help With Downpayment or Mortgage : n(millennial): 2520 n(genx): 16 3 36% 35% 34% 2 25% 1
OWNERS BY ETHNICITY: PURCHASE HELP FROM FAMILY 5 4 3 2 1 Did your parents or other family provide financial support with any of your home purchases in the past? Owners : Received Help with Downpayment or Mortgage : n: 2520 Emerging Millennial 52% Adult Millennial 5 Younger Gen-X Older Gen-X 37% 43% 34% 31% 32% 33% 26% 4 27% 29% 16% 43% 2 17%
SO WHAT ABOUT RENTERS
WHY AREN'T RENTERS BUYING Overwhelmingly #1 reason is affordability. Affordability, mortgage qualification climbs over age groups. Not ready to buy, ease of renting, lack of job drop, each drop by half over time.
MOST IMPORTANT REASON FOR NOT OWNING?... AFFORDABILITY 5 4 3 2 1 Why do you rent instead of buying? Select Your Most Important Reason n: 704 5 17% 8% 7% 5% 4% 3% 3% Affordability is the most important reason holding back purchases.
MOST IMPORTANT REASON FOR NOT OWNING FOR ADULT RENTERS?... AFFORDABILITY 4 Why do you rent instead of buying? By Age Group - Select Your Most Important Reason n: 704 52% 54% 48% Emerging Millennial Adult Millennial Younger Gen-X 2 19% 15% 1 12% 6% 9% 6% 2% 5% 9% 5% 4% 5% 6% 5% 2% 5% 5% 3% 3% 3%
TOTAL RENT How much is the total rent of your apartment or house? (excluding utilities) n: 1038 mean :$ 1300 median :$ 1200 2 15% 22% 19% 1 12% 12% 5% 4% 2% 4% 6% 8% 6% 5%
RESPONDENT SHARE OF RENT 3 How much do you pay for monthly rent of your apartment or house? (excluding utilities) n: 1319 mean :$ 600 median :$ 525 29% 2 22% 18% 1 8% 13% 3% 4% 1% 2%
SEARCHING FOR A HOME (HERE OR ELSEWHERE?)
ACTIVE HOME SEARCH IS DICTATED BY HOUSEHOLD FORMATION Millennials with Partners/Spouses are likely to be actively searching for new housing. Multi-Generational households (respondent with family / family with respondent) also actively searching. Millennials living with roommates, or living alone are less likely to be looking.
HOUSING SEARCH IN LAST 6 MONTHS? Have you actively looked for housing in the past 6 months? Pct Answer Yes: Renter/Owner; n: 1319 56% 4 43% 2 Renters more likely to be searching for new housing (rentals or purchases)
FULLY FORMED MILLENNIAL HOUSEHOLDS ARE MUCH MORE LIKELY TO BE ACTIVELY SEARCHING 5 4 By Household Type - Have you actively looked for housing in the past 6 months? Pct Answer Yes: Household Type; n: 1319 5 42% 3 2 1 3 16% 12% 8% Multi-generational households are also actively looking for housing
WHERE WILLYOUR NEXT HOME BE? Where do you plan your next home to be? Renters + Owners; n: 318 3 38% 2 1 19% 14% 11% 8% 8% 1%
OWNERS DON'T PLAN TO MOVE 4 3 Where do you plan your next home to be? Split by Renters-Owners; n: 318 33% 39% Owner Renter 2 23% 1 16% 16% 14% 1 1 11% 9% 12% 4% 1% 2%
GETTING OUT OF TOWN : WHY AREYOU MOVING? 4 COST OF LIVING / HOUSING Why are you planning to move out of your current city / county? Answered 4 or 5 out of 5 in rated seriousness; n: 139 2 23% 15% 1 17% 14% 12% 5% 7% 7% 7% 6% 6% 1%
GETTING OUT OF TOWN : AFFORDABILITY AND COLLEGE Why are you planning to move out of your current city / county / state? Answered 4 or 5 out of 5 in rated seriousness; n: 139 2 1 21% 25% 15% 18% 26% 3% 16% 1 1 6% 8% 6% 8% 6% 8% 5% Emerging Adult 7% 2% Indications that breaking into CA job market is harder for young Millennials
HOME PURCHASE DECISIONS When do you plan to purchase
AND THE POKEMON?
HOMEOWNERSHIP DECISIONS AND KNOWLEDGE Millennials living with their family are much more unsure of their future life decisions. 33% compared to 18% who live outside the family home don't know when they will buy a house. 23% of Millennial Owners are looking to move out of their starter homes within next year. Yet, 27% of Millennials who have purchased claimed that student debt delayed homeownership.
33% OF MILLENNIALS WHO LIVE AT HOME DO NOT KNOW WHEN THEY WILL PURCHASE. When do you plan to purchase your next house? All Millennials by Family Type (either as a home or as an investment property) n: 1118 4 3 44% 36% Not With Family With Family 33% 2 1 15% 11% 22% 17% 18% 2% 3% 33% compared to 18% who live outside the family home do not know when they will buy a house
MILLENNIALS NOT W/ FAMILY : 23% OF OWNERS WANT TO PURCHASE WITHIN AYEAR Millennials Not Living With Your Family: When do you plan to purchase your next house? Not With Family - Renters and Owners ; (either as a home or as an investment property) 4 47% Owners Renters 3 36% 2 1 23% 11% 24% 21% 14% 2 4% 1% Additional 36% of owners want to purchase within 1-5 years"
43% OF MILLENNIALS LIVING WITH PARENTS READY WITHIN 1-5YEARS 4 3 Millennials Living With Your Family: When do you plan to purchase your next house? Living With Family - Renters and Owners; (either as a home or as an investment property) 43% 33% Owners Renters 38% 2 1 13% 1 17% 17% 22% 5% 1%
ALL MILLENNIALS - DESIRED HOME FEATURES: COMMUTE, FRIENDS, SFH Which of the following features would you like to have in your ideal home? n: 1319 1 14% 13% 12% 11% 1 5% 8% 8% 7% 6% 4% 3% 1% 1%
EMERGING MILLENNIALS - WANT SLIGHTLY MORE 'URBAN LIVING' AMENITIES, ADULTS - MORE SINGLE FAMILY HOMES 15% 1 5% Which of the following features would you like to have in your ideal home? Split by Younger / Older Millennials; n: 1319 14% 13% 14% 14% 13% 11% 11% 11% 11% 1 8% 8% 8% 8% 8% 7% 7% 6% 4% 3% 4% 2% 2% 1% 1% 1% Emerging Adult
LIFE HOME DECISIONS MOVING TO THE SUBURBS?
MOVE TO THE SUBURBS - ALL MILLENIALS Do you think you will need to 'move to the suburbs,' particularly for schools? n: 1319 4 43% 3 2 3 27% 1
MOVE TO THE SUBURBS - ALL MILLENIALS SPLIT BY CHILDREN 5 Do you think you will need to 'move to the suburbs,' particularly for schools? Households with Children vs Households without Children n: 1319 49% 4 3 2 34% 25% 27% 26% 39% No Children Has Children 1
LIFE DECISIONS - PARENTS 3 2 Will you take elderly parents or grandparents into your home in the future? n: 1319 29% 28% 33% 1 4%
LIFE DECISIONS - PARENTS SPLIT BY ETHNICITY Will you take elderly parents or grandparents into your home in the future? n: 1319 5 ASIAN 48% 4 WHITE 41% 37% 38% LATINO 3 33% 3 32% 28% BLACK 2 2 19% 2 16% 1 11% 4% 4% 4% 6% 7% 1% 2%
SPURS TO GET IN THE GAME, RENTERS AND OWNERS
RENTERS : WHAT WOULD SPURYOU TO BUY? Would any of the following life events spur you into the process of buying a home? Renters, select any that apply. n: 722 3 37% 2 1 18% 14% 14% 8% 5% 4%
EMERGING RENTERS : NEED TO FINISH SCHOOL 4 Would any of the following life events spur you into the process of buying a home? Renters, select any that apply. n: 722 41% 3 32% 2 1 18% 18% 2 8% 13%14% 1 6% 6% 5% 4% 4% Adult Emerging
LIFE EVENT SPURS FOR SELF-OWNING MILLENNIALS 3 2 1 Would any of the following life events spur you into the process of buying another home? Either as a home or as an investment property - Self-Owning Millennials Split By Age; Select any that apply. n: 304 29% 26% 11% 23% 12% 19% 19% 1 16% 12% 13% 3% 2% 6% Emerging Adult Jobs, monetary factors are important for both, creating a family for Emerging
LIFE EVENT SPURS FOR MILLENNIALS LIVING WITH PARENTS Would any of the following life events spur you into the process of buying another home? Either as a home or as an investment property - Millennials Living With Parents; Select any that apply. n: 293 2 26% 22% 19% 1 12% 12% 6% 4%
LIFE EVENT SPURS FOR OWNERS - SPLIT BY RENTERS / OWNERS 3 2 1 Would any of the following life events spur you into the process of buying a home? Select any that apply. n: 1319 26% 37% 19% 18% 22% 14% 12% 14% 12% 8% 6% 5% Owner Renter 4% 4% Jobs are most important single factor for both spurring renters / and owners
WHAT S HOLDING RENTERS BACK? DEBT??
DEBT WORRIES Many millennials list financial debt as an issue (5 rate as 4-5 in level of challenge) 4 of millennials with 'debt issues' list student debt as the most burdensome, 23% credit cards Emerging Millennials are more likely to see student debt as a significant challenge to home purchase. 5 of Emerging Millennials vs. 33% of Adult Millennials think it's a significant challenge
5 OF DEBT WORRIERS Is financial debt a worry for you? Answer on a scale of 0 to 5, from 'No Challenge' to 'Significant Challenge' n: 1267 27% 2 22% 23% 1 12% 6% 7%
4 LIST OF DEBT WORRIERS LIST STUDENT DEBT AS THE LARGEST BURDEN 4 What kind of debt is the most burdensome for you? If Rating of Medium-Large Challenge or greater (4-5); n: 670 4 3 2 23% 1 14% 7% 7% 6% 3%
EMERGING MILLENNIALS ARE MORE WORRIED ABOUT STUDENT DEBT 5 4 3 What kind of debt is the most burdensome for you? Split by Age If Rating of 4 or greater selected for debt type; n: 670 49% 33% Emerging Adult 2 21% 25% 17% 1 9% 9% 5% 6% 7% 7% 6% 3% 3%
STUDENT DEBT AND HOMEOWNERSHIP Student Debt is a vocal issue - for some. 75% of all debt worriers say it held them back from homeownership Across ethnicities, 87% of Asian respondents, and 47% of black respondants said student debt was holding them back from buying.
STUDENT DEBT AND HOMEOWNERSHIP
STUDENT DEBT AND HOMEOWNERSHIP 24% of all renting respondants say student debt is holding them back from buying But 27% of Millennials who have purchased claimed that student debt delayed homeownership Still, non-white millennials who have purchased underestimated the effect of student debt on homeownership
MILLENNIAL RENTERS MOST WORRIED ABOUT DEBT FEEL CONSTRAINED BY STUDENT LOANS Renters : Is your student loan keeping you from exploring home ownership? Of all renters who selected Student Debt as Most Worriesome n: 226 76% 6 4 2 24%
BUT ONLY A MINORITY OF ALL RENTERS FEEL THIS IS TRUE Renters : Is your student loan keeping you from exploring home ownership? Of all renters n: 722 76% 6 4 2 24%
STUDENT DEBT AND HOUSING : OWNERS Did student debt of any kind keep you from exploring homeownership sooner? Owners not living with family : n: 597 73% 6 4 2 27%
STUDENT DEBT IS AN ISSUE FOR PURCHASING TODAY BUT NOT *AS BIG* AN ISSUE AS COMMONLY BELIEVED Did student debt of any kind keep you from exploring homeownership (renters), or homeownership sooner (owners)? Combined Response; n: 1319 27% 24% 2 1
SAVVY BUYERS BECOME BUYERS
RENTER MARKET KNOWLEDGE Most Millennial renters do not have a good idea of the current down-payment market 27% of Millennials think 20-25% downpayment required to purchase, 17% think 10-15%. 16% think 70-10 Less than 3% know about low down-payment FHA backed environment Yet only 19% knew of FHA 3.5% loans.
RENTER MARKET KNOWLEDGE BY ETHNICITY 2 of Latino renters believe that 70-10 downpayment is required for purchase. 2x other ethnicities 7 of all Millennial renters would be more likely to look to purchase if they knew about lower down-payments 82% of Black Millennial renters, 73% of Latinos would be more likely to look to purchase if they knew about lower down-payments
RENTERS : KNOWLEDGE OF HOME PURCHASE PROCESS, DOWN- PAYMENTS In your estimation, how much down-payment is required to purchase a home? n: 722 27% 2 17% 16% 1 9% 1% 2% 3% 6% 6% 5% 6% 3% Most Millennial renters do not have a good idea of the current down-payment market
RENTERS : KNOWLEDGE OF HOUSING PURCHASES BY ETHNICITY 3 2 In your estimation, how much down-payment is required to purchase a home? Response by Renters; n: 722 ASIAN WHITE LATINO BLACK 1 2 of Latino renters believe that 70-10 down-payment is required for purchase. 2x other ethnicities
RENTERS : KNOWLEDGE OF DOWNPAYMENTS If You knew you could qualify with lower downpayment, would you start to look for a house? n: 722 6 69% 4 31% 2 7 of all Millennial renters would be more likely to look to purchase if they knew about lower down-payments
RENTERS : KNOWLEDGE OF DOWNPAYMENTS BY ETHNICITY If You knew you could qualify with lower downpayment, would you start to look for a house? Split by Ethnicity; n: 722 8 6 63% 63% 73% 82% 4 2 82% of Black Millennial renters, 73% of Latinos would be more likely to look to purchase if they knew about lower down-payments
RENTERS : KNOWLEDGE OF FHA LOANS Federal Housing Administration (FHA) backed loans only require a 3.5% down-payment... Were you aware of such loans? Renters : n: 722 8 81% 6 4 2 19% 19% claim to be aware of 3.5% FHA backed loans.
RENTERS : KNOWLEDGE OF FHA LOANS BY ETHNICITY 25% Federal Housing Administration (FHA) backed loans only require a 3.5% down-payment Were you aware of such loans? n: 1319 25% 2 15% 1 14% 17% 19% 5%
SHORT TERM RENTAL HOSTING
AIRBNB HOSTING ~ 1 of Millennial Respondants have used homesharing services Airbnb/VBRO/Craigslist/etc as a host Another 1 of Millennials have seriously considered hosting. Renters and owners are equally likely to host. Most hosts live in the suburb, but most people live in suburbs. 45% of Renters and 75% of Owners have thought about purchasing a home as a short term rental.
HAVEYOU USEDYOUR HOME FOR HOMESHARING Have you used your residence as a short term rental n: 1319 8 82% 6 4 2 1 7%
HOMESHARING HOSTS ARE EQUALLY SFHS AND APARTMENTS Have you used your residence as a short term rental? Type of House of Respondents who have hosted; n: 123 4 3 2 47% 38% 1 8% 5% 1%
BUT AS A PROPORTION OF USERS RESPONDENTS IN SUBURBS ARE LESS LIKELY TO HOST Have you used your residence as a short term rental? Pct. of Respondents in Each Location Type Who Have Hosted ; n: 123 15% 16% 1 13% 11% 5% 8%
MAJORITY OF HOSTS HAVE THOUGHT ABOUT PURCHASING FOR HOMES- HARE USE Have you thought about purchasing a property to use primarily for short term rentals All Respondents Who Have Used AirBNB; n: 123 55% 4 45% 2
7 OF OWNER HOSTS / 45% OF RENTERS HAVE THOUGHT ABOUT PURCHASING FOR HOME-SHARING 6 Have you thought about purchasing a property to use primarily for short term rentals Pct of Respondents who answered yes.; n: 204 71% 4 46% 2 7 of Owner hosts have thought about purchasing just for hosts
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