Retiring, homeownership priorities, report millennials

Owning a home is a top priority for 72 percent of millennials.

According to Bank of America’s latest Homebuyer Insights Report, the only life goal to top homeownership is to save enough to retire, which 80 percent of millennials listed as a priority.  Traveling the world was important to 61 percent, followed by getting married at 50 percent and having children at 44 percent. In fact, with millennials aging, 38 percent reported they plan to buy within the next 24 months, while 36 percent plan to buy within 3-5 years. Spring is the preferred time to buy, according to 41 percent, followed by summer at 19 percent.

Fifty-seven percent plan to buy with a significant other, while 37 percent plan to purchase their first home by themselves. Eight percent plan to buy with a friend or family member. When thinking about purchasing their first home, 47 percent of millennials reported it made them feel mature and responsible, as well as like an adult, while 36 percent said it made them feel independent and 34 percent said established.

First-time buyers are split on whether they want a starter home or their forever home. However, more would prefer a modern layout over an older home with a solid foundation, and updated appliances are more wanted than an up-to-date exterior. The majority of first-time buyers (90 percent) would chose location over lower home prices.

What is deterring millennials from purchasing now? Forty-four percent said they don’t have enough saved for a down payment, while 33 percent said they don’t know where they plan to be in the next few years. Twenty-three percent reported they can’t afford the home they want, while 20 percent can’t afford their desired location.

Millennials are also not completely educated on the process. Nearly half believe a 20 percent down payment is needed and 43 percent believe a private mortgage insurance is necessary if a 20 percent down payment isn’t put down. And 23 percent believe that only those with “perfect” credit can get a mortgage.