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

Index 1980:Q1 = 100

CALIFORNIA HOUSING PRICE INDEX

700%
600%
500%
400%
300%
200%
100%
0%

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

80%

70%
70 +
52-70
37-51

60%

24-36

50%

40%
2005

2008

SOURCE : Census ACS 2014 1-year IPUMS U. MINNESOTA

2010

2012

BUT IS THERE HOPE?

CHANGE IN US INCOME DISTRIBUTION

CALIFORNIA

BUT IS THERE HOPE?

Recession Job Losses: 8.8 million
Since Jan10: +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
0
-2
-4
-6
-8

SERIES: Total Nonfarm Employment

SOURCE: US Bureau of Labor Statistics, CA Employment Development Division

2.3
1.7

FUTURE OF CALIFORNIA
Large Differences Across Ethnicities

CALIFORNIA POPULATION AGE COHORTS

7.6 M
Millenials

7.4 M
Gen-X

25

SOURCE : Census ACS 2014 1-year IPUMS U. MINNESOTA

7.6 M
Boomers

50

AGE

75

CALIFORNIA WHITE POPULATION AGE COHORTS

1.9 M
Millenials

25

SOURCE : Census ACS 2014 1-year IPUMS U. MINNESOTA

2.8 M
Gen-X

3.1 M
Boomers

50

AGE

75

CALIFORNIA HISPANIC POPULATION AGE COHORTS

4.3 M
Millenials

2.3 M
Gen-X

25

SOURCE : Census ACS 2014 1-year IPUMS U. MINNESOTA

1.5 M
Boomers

50

AGE

75

CALIFORNIA BLACK POPULATION AGE COHORTS

0.33 M
Millenials

25

SOURCE : Census ACS 2014 1-year IPUMS U. MINNESOTA

0.60 M
Gen-X

0.39 M
Boomers

50

AGE

75

CA HOMEOWNERSHIP RATES BY RACE / AGE

24-36

37-51

52-70

80%

60%
ASIAN
BLACK
HISPANIC
WHITE

40%

2005 2008 2010 2012

2005 2008 2010 2012

SOURCE : Census ACS 2014 1-year IPUMS U. MINNESOTA

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%

0%

Split Millennials into two categories "Under 25" and "26-33"

RESPONDENT DEMOGRAPHICS : EDUCATION

What is the highest level of education you have completed?
n: 1319

30%

30%

29%

20%

18%
10%

0%

3%

6%

8%
5%

2%

0%

EMERGING MILLENNIALS ARE STILL IN SCHOOL

What is the highest level of education you have completed?
n: 1319

25%

20%

25%

4%

1%

Emerging
Adult

22%

12%

10%
0%

36%

35%

30%

4%

7% 8% 9%

7%
2%

1%

2%

0% 1%

HALF OF MILLENNIALS ARE SECOND GENERATION

Were your parents born in the United States?
n: 1319

50%
40%

52%
39%

30%
20%
10%
0%

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
75%

WHITE
87%

78%

50%
25%
0%

12%

10%

8%

LATINO

BLACK
85%

75%
50%
25%
0%

5%

56%
33%
11%

2%

13%

SELF-REPORTED HOUSEHOLD INCOME

What is your annual household income?

n: 1038 mean :$ 70500 median :$ 49000

27%
24%
20%

15%
10%

0%

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

30%

34%

31%

Owner
Renter

20%

10%

14%

18%

17%

14%

18%
11%

14%

13%
6%

0%

3%

5%
1%

2% 0%

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

What is your living situation?

Split by Millennials Living with Family, N: 1319

80%

60%

63%

40%

37%
20%

0%

With family means living in the home of parents / grandparents / other family

47% OF EMERGING MILLENNIALS LIVE WITH FAMILY, V. 26% OF ADULT

MILLENNIALS
What is your living situation?

Adult vs Emerging Millennials by Family Type

n: 1319

Emerging

Adult

80%

72%

60%
40%
20%
0%

53%

47%
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 100%

35% OF ALL MILLENNIALS LIVE WITH A SPOUSE; 17% LIVE ALONE; 11%
LIVE WITH 'ROOMMATES'
What is your living situation?
N: 1319

40%

37%
30%

35%

20%
10%

16%
11%

0%

Can answer yes to more than one option - ie. live with parents and with spouse

7%

7%

% LIVING ALONE RISES, % LIVING WITH FAMILY DROPS, % LIVING WITH A

SPOUSES RISES FAST
What is your living situation? Detailed
N: : 1319

60%
48%

40%

20%

0%

Emerging
Adult
Younger Gen-X

59%
47%

28%
21%

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

What is the current housing situation of the household or place you are in?
n: Renters: 722, Owners: 597

80%

60%

58%
40%

20%

0%

42%

RENTERS ARE MORE LIKELY TO LIVE ALONE

Do any of these options fit your household?

Split by Renter / Owner; n: 1319

Owner
40%
30%

Renter

40%
33%

32%
23%

20%
10%
0%

18%
11%

15%

10%
2%

4%

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
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

80%

71%
63%

60%

40%

37%
20%

29%

0%

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

What type of home do you reside in?
n: 1319

50%

52%

40%
30%

31%

20%
10%
0%

10%

4%

2%

1%

60% OF MILLENNIALS WHO LIVE WITH FAMILY, LIVE IN SFHS

What type of home do you reside in?
Split By Region; n: 1319

60%
40%
20%
0%

Not with Family

With Family

CURRENT HOME LOCATION

What best describes your home's location?
50%

n: 1319

48%

40%
30%

28%

20%
10%
0%

11%

10%
3%

55% OF MILLENNIAL HOUSEHOLDS HAVE BEEN LIVING IN A PLACE

3YEARS OR LESS
How long have you lived in your current home??
n: 1319

30%

31%
25%

20%

10%

12%
8%

0%

8%

10%
6%

RENTERS MOVE MORE FREQUENTLY

How long have you lived in your current home??
n: 1319

33%

30%

25%

20%

10%

Owner
Renter

36%

14%

13%

12%

11% 10%
7%

0%

15%
11%
4%

7%
2%

MILLENNIALS EITHER HAVE LIVED WITH FAMILY FOR A

LONG TIME, OR BY SELVES FOR SHORT PERIODS
How long have you lived in your current home??
n: 1319

40%
30%
20%
10%
0%

Adult Mill'n not w/ Family

Adult Mill'n w/ Family
Emerging Mill'n not w/ Family
Emerging Mill'n w/ Family

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

34%

30%

25%

20%

10%

0%

31%

4%

6%

AMERICAN DREAM - MOST IMPORTANT FACTORS

Which factors contribute to your ideal of the `American Dream`

Select All That Apply n: 1319

17.8%
15%

17.5%

16.4%
13.9%

10%

5%

0%

12.5%

11.4%

10.4%

IS PURCHASING A HOME A SAFE INVESTMENT? FOR ALMOST ALL

RESPONDANTSYES
Do you believe that purchasing a home is a safe investment?
n: 1208

45%

40%

37%

30%
20%
10%
0%

12%
1%

5%

OWNERS QUESTIONS
House Purchase Characteristics

FIRST TIME BUYER

Millennial Owners - Was this your first house purchase?
n: 225

85%

80%

60%

40%

20%

15%
0%

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%

10%

5%

0%

VALUE CHANGE
Are you waiting for your home value to increase to a specific amount before selling?
n: 225

15%

10%

5%

0%

HOW LONG DOYOU PLAN TO KEEP THIS HOME

How long do you plan to keep this home?
n: 225

35%

30%

20%

19%
12%

10%

0%

10%

10%

9%
5%

1%

MOST IMPORTANT REASON FOR PURCHASE

What was the most important reason for buying this home?
n: 255

20%
15%
10%
5%
0%

23%
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

Have your parents or other family offered to help with a home purchase?
Answered Yes to Either Help With Downpayment or Mortgage : n: 324

80%

80%

60%

40%

20%

0%

20%

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

36%
30%

20%

10%

0%

35%

34%
25%

OWNERS BY ETHNICITY: PURCHASE HELP FROM FAMILY

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
Adult Millennial
Younger Gen-X
Older Gen-X

52%

50%

43%

40%

50%
43%
40%

37%

30%

34%
31%

32%

33%
26%

27%

29%

20%

20%
16%

10%
0%

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

Why do you rent instead of buying?

Select Your Most Important Reason n: 704

50%
40%

50%

30%
20%
10%
0%

17%
8%

7%

Affordability is the most important reason holding back purchases.

5%

4%

3%

3%

MOST IMPORTANT REASON FOR NOT OWNING FOR ADULT RENTERS? ...
AFFORDABILITY
Why do you rent instead of buying?

By Age Group - Select Your Most Important Reason n: 704

40%
20%
0%

Emerging Millennial
Adult Millennial
Younger Gen-X

52%54%
48%

19%
15%
10%
2%

6%

12% 9%
9%
6% 5%
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

22%

20%

19%
15%

12%

10%

6%

5%

4%
0%

12%

4%
2%

8%
6%

5%
0%

RESPONDENT SHARE OF RENT

How much do you pay for monthly rent of your apartment or house? (excluding utilities)

n: 1319 mean :$ 600 median :$ 525

30%

29%
22%

20%

18%
13%

10%

8%
0%

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%

40%

43%

20%

0%

Renters more likely to be searching for new housing (rentals or purchases)

FULLY FORMED MILLENNIAL HOUSEHOLDS ARE MUCH MORE LIKELY TO

BE ACTIVELY SEARCHING
By Household Type - Have you actively looked for housing in the past 6 months?
Pct Answer Yes: Household Type; n: 1319

50%
40%
30%

50%
42%
30%

20%
10%
0%

Multi-generational households are also actively looking for housing

16%

12%

8%

WHERE WILLYOUR NEXT HOME BE?

Where do you plan your next home to be?
Renters + Owners; n: 318

38%
30%
20%
10%
0%

19%
14%

11%

8%

8%
1%

OWNERS DON'T PLAN TO MOVE

Where do you plan your next home to be?

40%
30%

Split by Renters-Owners;
n: 318

39%

Owner
Renter

33%
23%

20%
16%

10%
0%

16%

14%

10%

10%

11%

12%
9%
4%

1%

2%

GETTING OUT OF TOWN : WHY AREYOU MOVING?

40% 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

20%
15%
10%
5%
0%

23%
17%
14%

12%
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

26%

25%
20%

21%

Emerging
Adult

18%
16%

15%
10%

10%

10%
6%

0%

8%

3%

Indications that breaking into CA job market is harder for young Millennials

6%

8%

6%

8%
5%

7%
2%

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

36%

30%
20%
10%
0%

Not With Family

With Family

44%

40%

33%
22%

15%

18%

17%
11%
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)

Owners
Renters

47%
40%

36%

30%
20%
10%

24%

23%

21%

20%
14%

11%

0%

Additional 36% of owners want to purchase within 1-5 years"

4%

1%

43% OF MILLENNIALS LIVING WITH PARENTS READY WITHIN 1-5YEARS

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)

Owners
Renters
38%

43%

40%

33%

30%

22%

20%
10%
0%

13%

17%

17%

10%
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

14%

10%

13%

12%
11%

10%
8%

5%

8%

7%

6%
4%

0%

3%
1%

1%

EMERGING MILLENNIALS - WANT SLIGHTLY MORE 'URBAN LIVING'

AMENITIES, ADULTS - MORE SINGLE FAMILY HOMES
Which of the following features would you like to have in your ideal home?
15%

10%

Split by Younger / Older Millennials; n: 1319

14%
13% 14%
13%

14%
11%

11%11%

11%
10%
8% 8% 8% 8%

5%

0%

7%

Emerging
Adult

8% 7%
6%

4%

3%

4%
2%

2%

1%

1% 1%

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

43%

40%

30%

20%

10%

0%

30%

27%

MOVE TO THE SUBURBS - ALL MILLENIALS SPLIT BY CHILDREN

Do you think you will need to 'move to the suburbs,' particularly for schools?
50%

Households with Children vs Households without Children n: 1319

49%

40%
30%
20%
10%
0%

39%

34%
25%

27%

26%

No Children
Has Children

LIFE DECISIONS - PARENTS

Will you take elderly parents or grandparents into your home in the future ?

n: 1319

30%

33%
29%

28%

20%
10%
0%

4%

LIFE DECISIONS - PARENTS SPLIT BY ETHNICITY

Will you take elderly parents or grandparents into your home in the future ?

50%
40%
30%
20%
10%
0%

n: 1319

ASIAN
WHITE
LATINO
BLACK

48%
41%
33%

30%
20%

19%
4%
1% 4% 4%

37% 38%
28%
20%

32%
16%
2%

6% 7%

11%

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

30%
20%
10%
0%

37%

18%

14%

14%
8%

5%

4%

EMERGING RENTERS : NEED TO FINISH SCHOOL

Would any of the following life events spur you into the process of buying a home?

Renters, select any that apply. n: 722

40%
30%
20%
10%
0%

41%
32%
20%

18% 18%
8%

Adult
Emerging

13% 14%

10%

6% 6% 5%
4% 4%

LIFE EVENT SPURS FOR SELF-OWNING MILLENNIALS

Would any of the following life events spur you into the process of buying another home?

30%

Either as a home or as an investment property - Self-Owning Millennials Split By Age; Select any that apply. n: 304

26%

29%
23%

20%
10%

11%

19% 19%
12%

16%
10%

12%

0%

Jobs, monetary factors are important for both, creating a family for Emerging

Emerging
Adult

13%
3% 2%

6%

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

26%
20%

10%

22%

19%
12%

12%
6%

0%

4%

LIFE EVENT SPURS FOR OWNERS - SPLIT BY RENTERS / OWNERS

Would any of the following life events spur you into the process of buying a home?

Select any that apply. n: 1319

Owner
Renter

37%

30%
26%

20%
10%

19% 18%

22%
14%

12%

14%

12%
8%

0%

Jobs are most important single factor for both spurring renters / and owners

6%

5%

4%

4%

WHATS HOLDING RENTERS BACK?

DEBT??

DEBT WORRIES
Many millennials list financial debt as an issue (50% rate
as 4-5 in level of challenge)
40% 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.
50% of Emerging Millennials vs. 33% of Adult Millennials
think it's a significant challenge

50% 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%
22%

20%

12%

10%

6%
0%

7%

23%

40% LIST OF DEBT WORRIERS LIST STUDENT DEBT AS THE LARGEST

BURDEN
What kind of debt is the most burdensome for you?

If Rating of Medium-Large Challenge or greater (4-5); n: 670

40%

40%

30%

20%

10%

23%
14%
7%

0%

7%

6%

3%

EMERGING MILLENNIALS ARE MORE WORRIED ABOUT STUDENT DEBT

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

50%

49%
Emerging
Adult

40%
30%
20%
10%
0%

33%
25%
21%

17%
9%
5%

9%

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%
60%

40%

20%

0%

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%
60%

40%

20%

0%

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%
60%

40%

20%

0%

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%
20%

10%

0%

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 70-100%
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

20% of Latino renters believe that 70-100% downpayment is required for purchase. 2x other ethnicities
70% 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, DOWNPAYMENTS

In your estimation, how much down-payment is required to purchase a home?
n: 722
27%

20%
17%
16%

10%

9%

6%

6%

3%

0%

2%
1%

0%

Most Millennial renters do not have a good idea of the current down-payment market

5%

6%
3%

RENTERS : KNOWLEDGE OF HOUSING PURCHASES BY ETHNICITY

In your estimation, how much down-payment is required to purchase a home?

30%

Response by Renters; n: 722

ASIAN
WHITE
LATINO
BLACK

20%

10%

0%

20% of Latino renters believe that 70-100% 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

69%
60%

40%

31%
20%

0%

70% 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

80%

82%
73%

60%

63%

63%

40%

20%

0%

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

80%

81%

60%

40%

20%

19%

0%

19% claim to be aware of 3.5% FHA backed loans.

RENTERS : KNOWLEDGE OF FHA LOANS BY ETHNICITY

Federal Housing Administration (FHA) backed loans only require a 3.5% down-payment
Were you aware of such loans? n: 1319

25%

25%

20%

19%
17%

15%

14%
10%

5%

0%

SHORT TERM RENTAL HOSTING

AIRBNB HOSTING
~ 10% of Millennial Respondants have used homesharing
services Airbnb/VBRO/Craigslist/etc as a host
Another 10% 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

80%

82%

60%
40%
20%
0%

10%

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

40%
30%

47%
38%

20%
10%
0%

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%
13%

10%

11%
8%

5%

0%

MAJORITY OF HOSTS HAVE THOUGHT ABOUT PURCHASING FOR HOMESHARE USE

Have you thought about purchasing a property to use primarily for short term rentals

All Respondents Who Have Used AirBNB; n: 123

55%

40%

20%

0%

45%

70% OF OWNER HOSTS / 45% OF RENTERS HAVE

THOUGHT ABOUT PURCHASING FOR HOME-SHARING
Have you thought about purchasing a property to use primarily for short term rentals

Pct of Respondents who answered yes.; n: 204

71%
60%

40%

20%

0%

70% of Owner hosts have thought about purchasing just for hosts

46%

2017 California Economic & Market

Forecast
Tuesday, October 18, 2016
2:00 PM 3:00 PM
To register: WWW.CAR.ORG/MARKETDATA/VIDEOS