Survey: Young Adults Underestimate Costs of Homeownership

See which key areas younger buyers tend to be most confused about so you can provide education in your blog posts and social media outreach.

Young adults may be missing some key information to move forward in the housing market. For example, two out of three young adults recently surveyed say they are waiting for lower mortgage rates to start the homebuying process, according to a survey of 1,000 non-owner millennials (between the ages of 25 to 40) conducted by Lombardo Homes. However, economists have largely predicted that mortgage rates will soon start to edge upwards in the coming weeks, moving higher from their current lows below 3%.

With mortgage rates already near historic lows, this “may speak to a lack of education and awareness among this cohort of home buyers,” the survey notes.

Also, many young adults are underestimating how much they need for homeownership, the survey finds. Millennials underestimated how much home they can afford right now, how much interest they would pay over a 30-year mortgage, and how much home values appreciate, on average, over 10 years, the survey notes.

Source: "Survey: Young Adults Underestimate Costs of Homeownership"