As the housing industry mends, younger Americans are expressing greater confidence in the market, according to results from Prudential Real Estate’s Q2 outlook survey.
Of the 2,600 millennials surveyed in Q2, 71 percent said their perception of the housing market is “favorable,” up from 65 percent in Q1. In 2011, only 52 percent of Americans aged 25 to 34 held a favorable perception of the real estate market.
The respondents were also optimistic toward real estate and home values, with 83 percent expressing confidence compared to 77 percent in Q1.
Millennials also placed strong emphasis on aspects of homeownership that had more to do with ideals and emotions rather than finances.
“People are looking optimistically at housing for all right reasons – a place to feel secure, build a future and raise a family,” said Earl Lee, CEO of HSF Affiliates LLC and president of Prudential Real Estate.
For example, 70 percent said finding the right home and community is crucial to family happiness, while 93 percent said they favor owning for more space to raise a family.
Seventy-six percent also said owning is a key part of the American dream, while 92 percent said homeownership gives a sense of pride or accomplishment.
Meanwhile, 75 percent said owning provides “financial security to borrow against.”
Even with rising rates, 78 percent of respondents said homeownership is valuable regardless of the rate hikes.
However, rising rates are prompting millennials to act faster, with 71 percent stating they are encouraged to buy a home now rather than later.
Sixty-five percent young Americans surveyed also said they watch rates closely, yet 43 percent said they believe rates are holding steady or falling even though rates have been on the rise.
In order to find the right home, 63 percent of respondents indicated that a good agent can help them make the right choices.
Most millennials still view mortgage financing as a challenge, with 57 percent stating securing a mortgage is more difficult than it ever was prior to the market crisis.