(NEWPORT BEACH, CA) -- Like the early Baby Boomers in the 1946 to 1964 era, the 80-million strong Generation Y today will make up the wave of future homeowners in the U.S., according to a just-released study by The Concord Group of Newport Beach, CA.
In what is believed to be the first major national housing survey of its kind, taken during the current housing downtown, the California-based real estate advisory firm concludes Generation Y is generally bullish on the housing market.
The group has "a surprisingly strong sense of optimism about the future, despite cautious near-term sentiment," the study reveals.
Surprisingly, the survey also found the young homeowners are willing to pay more for housing if the development is near their jobs.
Until Concord completed this survey, it found there was "little data on what this influential buying group actually wants in their next home or how the current downturn has affected their future plans."
The survey found:
- 50% say they are likely to purchase a home within the next three years.
- 50% say tax credits or lower interest rates would motivate them to purchase a residence sooner.
- 70% believe home prices will be higher or at today's levels in two years.
- 62% say wealth creation is a very big advantage of real estate ownership.
Although economic conditions factor strongly in their decision-making process, survey respondents say that lower home prices and/or a raise at work would be the top motivations for buying a home sooner than planned.
"Generation Y is going to have more impact on the national housing market than any group since the early Baby Boomers," says Emma Tyaransen, a Concord principal.
The survey was done at this time because "we wanted to better understand their preferences and expectations, especially as they will have such an impact on our future," Tyaransen says.
The majority of respondents to the survey say they are:
- Willing to pay a premium to live closer to their job.
- Seeking out a larger space for their next residence.
- Interested in living near alternative modes of transportation.
- Likely to put down less than 20% on their next residential purchase.
- Planning to eventually abandon the cities for a life in the suburbs.
"What's so interesting about this data is that it supports our prediction that transit-oriented development will command a premium in the near future," adds Tyaransen.
"It also proves that suburban development will continue to play an important role in the housing market that emerges from the downturn."
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