Over half of California's millennials see homeownership in their future living arrangements, according to the California Association of Realtors.
Up to 54% of roughly 1,000 California residents age 18-34 who participated in a recent CAR survey consider homeownership highly important and expect to buy within five years. On a scale of 1-10, these participants gave homeownership an 8, with 10 being "extremely important" and 1 "not at all important."
Aspirations apart, 45% were not sure they could obtain a mortgage right now, while another 33% said they would not be able to qualify.
For 45% of respondents, affordability is the biggest concern and expect home prices will start increasing in a year. Up to 67% of those currently renting said they can't afford to purchase. Roughly 36% said they would be motivated to buy a residential property if the price is affordable; 16% if they can afford the down payment and 15% if their finances improved.
"Despite recent news reports of young adults moving back home to live with mom and dad," millennials still aspire to own a home, according to CAR president Kevin Brown. What's encouraging is that "the majority haven't changed their attitude toward homeownership," despite seeing friends and family struggle through the housing crisis.
Roughly 59% of the participants said the housing crisis did not affect their belief that homeownership is a good investment.
Surprisingly, even though one-third of millennial renters in California have student debt, most said it is not preventing them from qualifying for a mortgage, according to the survey. Roughly 43% of respondents, however, said they do not have debt.
Also contrary to stereotypes, 67% prefer "single-family homes on large lots in the suburbs," and plan to purchase a single-family detached home, compared to 12% who plan to purchase a townhome or condominium.
