When it comes to the Millennial generation, real estate and attaining the American Dream, one question often asked is what fuels the Millennial purchase/rent decision-making process?
As the parent of three Millennial children, questions will sometimes arise concerning what it is that’s most important to them vis a vis achieving the American Dream?
The answer, however, will often be that I’m not 100% sure.
But, the recent 2018 Millennial Study produced by Bank of the West helps to define this generation, for those whose businesses need to better understand. It is a highly recommended read that can be found in its entirety here.
• Six in ten Millennials believe that the American Dream is attainable today. Top ingredients to
the American Dream are: owning a home, becoming debt-free, and retiring comfortably.
• Owning a home (56%) takes precedence over paying off debt or retiring comfortably for
Millennials. In fact, nearly 1 in 3 Millennial homeowners have dipped into retirement funds for
• 68% of Millennial homeowners have regrets about buying a home, wishing they had been
more prepared going into the purchase. They cited putting more money down and better
inspecting the house as steps they wish they’d taken.
• Millennials have a complicated relationship with debt: while 69% feel they’ve made it when
they are debt-free, they also say they’re comfortable carrying debt. They also understand that
they need to take on a mortgage to become homeowners and are comfortable with this kind of
“rite of passage” debt.
• More Millennials feel confident in their understanding of financial products than Gen Xers and
Boomers, but are mistrusting of the markets due to having come of age during the financial
crisis. In fact, 66% say they feel safest keeping most of their savings out of the market. This
may hinder them as they prepare for retirement. (Source: Bank of the West 2018 Millennial study)
Michael Haltman, CEO
Hallmark Abstract Service