Millennials may make up the single largest share of homebuyers among Americans, responsible for 42% of all new home purchases in 2017, but they aren't necessarily happy about it. In a new survey conducted by ValueInsured, a company providing down payment insurance for mortgage borrowers, only 58% of millennials believed buying a home was the best financial decision they could make for themselves and their family—a drop from the 81% who felt the same two years ago in a previous version of the survey. Worse, less than half of the 1,031 respondents (48%) believed buying a home today in America was a good investment, down from 77% two years prior.
For the vast majority of millennials feeling despondent about owning a home, the reason lay with high prices. Over two-thirds believe home prices are currently too high, and 85% expect the down payment on their home to wipe out more than half the total value of their personal assets. In fact, the financial strain these prospective homeowners feel purchasing a new home will place on them has convinced them they need to make some big sacrifices, including delaying having children (23%) or relocating to another, more affordable city (31%) in order to become homeowners. With the median price of a home at $218,000 in July 2018, an 8% increase from last year, it's small wonder many millennials despair over how they can afford to own their piece of the American Dream.
Coupled with a recent study of millennial homeowners by Bank of the West (headquartered in San Francisco), the findings from ValueInsured paint a dark picture of the attitude America's largest generation has towards homeownership. Bank of the West surveyed 1,014 adults last November and discovered 68% of millennials (defined here as adults aged 21 to 34) experienced buyer's remorse. That's a larger share than the 55% of Generation X and 35% of Baby Boomers harboring the same regret. When asked to identify what about their new house disappointed them, millennials reported damage to the house previously undiscovered and the cost to maintain a home as the primary culprits.