Millennials naïve on housing costs

November 11, 2019

Most millennials (those aged 18 to 34) want and even plan to buy a home but are naïve concerning what they can afford, a new survey reveals.
More than 400 millennials who are members of the Angus Reid Forum were polled about their home buying and selling strategy. The survey was conducted between September 12 to October 2 by Nobul, an online marketplace that matches home buyers and sellers.
Study findings suggest that while many millennials have confidence in the process of buying or selling a home, they don't fully understand all of the costs in what will likely be one of the largest purchases they ever make.
Among the key findings, when it comes to:
• Selecting an agent, 75 per cent of millennial homeowners hired the first agent they met—compared with the average millennial Netflix user browsing 10-20 titles before making a selection;
• Knowing about commission structures, 38 per cent of prospective millennial homebuyers know nothing, or very little, about average commission rates;
• Understanding overall affordability of a home, 33 per cent of prospective millennial home buyers surveyed said housing prices are affordable in their area—despite the average bungalow costing $521,250 nationally and the average millennial after-tax household income being $44,093; 
But, when it comes to wanting to purchase a home, first-time homebuyers account for 68 per cent of surveyed millennials who plan to buy home in the next two years.
"The study clearly shows that while millennials value home ownership, with many planning to purchase soon, they don't completely understand the costs," stated Regan McGee, CEO, Nobul. "Industry stakeholders need to take more responsibility in creating transparency in real estate transactions, especially as it relates to the costs associated with buying and selling a home.”