5/6/2013 - Homeownership intentions more robust
Many of today's younger workers find themselves in positions where it makes sense for them to rent an apartment or home rather than to own a residence. But they fully intend to purchase a house at some point in the future. And these intentions have become more intense in the past year, a new poll shows.
Homebuilding company PulteGroup indicates that among people between the ages of 18 and 34, nearly two-thirds of them say that their desire to purchase their own residence has heightened over the past 12 months.
Fred Ehle, vice president for the Bloomfield Hills, Michigan-based construction firm, noted that this says a lot about the state of the real estate industry, given that these prospective home owners have seen housing conditions when they've been at their worst.
"Millennials have witnessed the housing boom and bust, but still believe homeownership is a good investment," said Ehle. "Consistent with other third-party research that shows more than 90 percent of millennials plan to buy a home someday, we see a lot of young adults who are making financial sacrifices to afford a place of their own."
The survey also pointed to certain aspects of homes that respondents consider important and had a heavy influence on whether they'd purchase a place. For example, 85% of respondents said that their home had to have plenty of room for storage, nearly two-thirds said that they wanted it to be outfitted with a deck or porch and 36% indicated that they wanted their residence to be amenable to working from home.
As renters transition to homeownership, property insurance will be something they'll likely purchase as a protection against their investment. According to a 2012 poll, 96% of homeowners had homeowners insurance but just 31% of renters had renters insurance.