Much has been written about homeownership among millennials and baby boomers. Specifics have focused on lack of housing and inability to save for down payments (millennials), and downsizing and relocating (boomers). Clever Real Estate recently researched home-owning older-generation boomers and younger-generation millennials, and came up with some interesting comparisons.
For one thing, while most respondents reported “a sense of happiness, security, comfort and pride when asked to reflect on their decision to buy,” millennials were twice as likely to be stressed out about home ownership than their older cohort.
Furthermore, millennials were much more likely to experience buyer’s remorse than older generations: Nearly 50% of millennial respondents experienced some sort of remorse, following their purchase.
Clever Real Estate’s Thomas O’Shaughnessy indicated that part of the reason for the stress and anxiety among the younger cohort can be put down to experience. “The majority of millennial homeowners — 61% — have owned their homes for less than five years,” he said. Meanwhile, on the other end of he spectrum, 68% of baby boomers have lived in their homes for more than 10 years, and understand the investment and financial costs of homeownership, O’Shaughnessy said.
Furthermore, millennials are “still figuring out how to juggle everything life throws at them,” O’Shaughnessy continued. “For many, it seems the responsibilities of home ownership are a bit more than they bargained for.”
Finally, millennials are putting smaller down payments when buying homes, meaning they are paying more principal interest, taxes and insurance each month.
Adding to the scenario, is that millennials are more likely than boomers to buy a fixer-upper than a newer house, meaning the younger generation is putting more time and financial resources into home repair. Also, millennials are “significantly more likely” to use a personal loan or credit card to finance renovations, the Clever Real Estate study indicated. Baby boomers are more likely to use cash to finance projects.
One thing that boomers and millennials seem to share, however, are major repairs/upgrades to their homes. The study noted that 70% of baby boomers and 80% of millennials indicated they would be making home renovations in the next five years. But, even in the midst of this similarity, there are differences between the older and younger cohort. Specifically, the average millennial is planning between three and four major home-improvement projects over the next five years. Meanwhile, the average baby boomer is planning between two and three.
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