Millennials are ready to give up some conveniences in order to finance a home purchase
(Washington DC, July 14, 2015) — A majority of millennials (ages 24-34) are willing to sacrifice modern day conveniences like cell phones, internet, cable and Starbucks in order to save for a down payment on a home. A new survey from the Collingwood Group shows 65% of millennials polled are somewhat to very likely to give up on at least one of the above to finance a home purchase. But when it comes to financing their first homes millennials (also known as “generation Y”) think more like their parents. The Collingwood Group survey finds close to 75% of millennials would be more comfortable applying for a mortgage with a traditional bank over an alternative lender:
And despite the millennial generation’s internet focus, they are not willing to pay more for a streamlined, online mortgage process. Interestingly, if millennials had already gone through the mortgage application process, they were slightly more inclined to pay more for a more streamlined process (23% vs 21%). Instead, just like previous generations it’s the cost that matters most to them.
The survey further questions perceptions that millennials prefer city life with close to 70% of those surveyed saying they prefer buying their first home in the suburbs. The Colllingwood Group Chairman Tim Rood says, “It’s fascinating that millennials want to live in the city while they’re single but want the American Dream of white picket fences and yards when they are ready to buy, according to our exclusive poll. That is so critical given the ambiguity and fear that millennials will get hooked on urban conveniences and abandon the suburbs, leaving baby boomers and other downsizing households in the lurch.”
He adds, “The data on millennials that own their home (23%) who would pay more for a better process is also notable. On the most expensive purchase of their lives they are willing to pay more because the current process is so God awful.” Rood notes, “Price matters to millennials who have lower incomes and more debt and the mortgage industry MUST figure out ways to become more efficient and streamline operations to reduce costs. The whole process is clearly ripe for disruption.”
The poll was conducted July 5-8, 2015 among a random group of 650 people.
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This article was published on July 1, 2015. All information contained in this posting is deemed correct and current as of this date, but is not guaranteed by the author and may have been obtained by third-party sources. Due to the fluid nature of the subject matter, regulations, requirements and laws, prices and all other information may or may not be correct in the future and should be verified if cited, shared or otherwise republished.