Home Consumer Survey: Millennials Grossly Underestimate Cost for New Homes

Survey: Millennials Grossly Underestimate Cost for New Homes

millennials

It would take the average South Florida millennials nearly seven years to afford a down payment for a new home. In San Francisco, it’d take three decades.

A survey of 30,000 renters across the U.S. came to an eye-catching conclusion: Millennial renters in major cities have wildly underestimated what it takes to buy a home.

The study by San Francisco-based Apartment List Inc., an online rental marketplace, found that eight in 10 millennial renters want to buy a home, but list affordability as the major obstacle.

In South Florida, millennials on average have $3,450 in their savings account. The young renters save an average of $250 from their monthly incomes and expect to receive about $2,300 in financial help for their first down payment.

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At that rate, it would take 6.7 years to afford a 20 percent deposit for a starter home in Miami-Dade and Broward counties, which amounts to $26,000. Yet the buyers expect to spend a lot less—$20,000.

[vc_btn title=”More on Millennials affording new homes” style=”outline” color=”primary” size=”lg” align=”left” link=”url:http%3A%2F%2Fwww.dailybusinessreview.com%2Fhome%2Fid%3D1202757023716%3Fslreturn%3D20160407001901|title:More%20on%20Millennials%20affording%20new%20homes|target:%20_blank”][vc_message message_box_style=”3d” message_box_color=”turquoise”]By Carla Vianna, Daily Business Review, excerpt reposted on SouthFloridaReporter.com May 7, 2016 [/vc_message]
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