- Flickr/John Benson
Most millennials want to own homes, but they’ll likely be driven to the suburbs because of high home prices in cities.
This was reconfirmed in a survey of 19- to 35-year-olds conducted by Bank of America Merrill Lynch.
It found that 66% of millennials rated homeownership either as “very important” (40%) or “important” (26%).
In a primer on millennials and centennials published last week, BAML equity strategist Sarbjit Nahal said the survey showed that the share of millennials who said home buying was “very important” slipped from a year ago.
Nahal wrote: “The most common reasons cited by millennial respondents for not buying a home were: 1) I am not at the right point in my life and 2) I don’t make enough money to afford a home. Younger millennials (20-24Y) were more inclined to point to their current stage of life, while older millennials (30-34Y) appear to be emotionally prepared to be homeowners, but lack the financial resources to do so.”
BAML included this chart from Trulia, which shows the cities with the highest move-away rate relative to expectations among millennials.
- Bank of America Merrill Lynch
BAML’s survey also confirmed that millennials have reached “peak urban” living. It found that 53% of respondents who currently live in the suburbs said they’d stay put.