The “renter” nation theory appears to really be a myth after all. According to Trulia’s 2012 American Dream Survey, 93 percent of young adults want to purchase a new home in the long run.
Trulia polled 2,083 adults to discover their thoughts on home ownership and the current real estate market, and 72 percent of respondents in the 18 to34 age range said owning a home is part of their personal American Dream. Older renters were actually less likely to desire home ownership, and 43 percent of young adults are already homeowners!
All consumers, regardless of age, said they expect housing prices, rents and mortgage rates to rise in 2013. Nearly one-third of renters want to purchase a home in the next two years, but are concerned that low home inventories will affect their options. Home inventory is currently down 23 percent from last year and 43 percent from 2010, according to the Department of Numbers’ HousingTracker. This means that if builders want to keep up with the demands of the next generation of homebuyers, they will have to launch more new construction projects.
If prices rise in 2013, more people will be encouraged to sell their homes. However, the Trulia survey revealed that home sales aren’t reliant only on new construction and home prices, but on personal factors as well. More than 30 percent of survey respondents said they plan on moving in 2013 due to family reasons and 26 percent of respondents said they plan on moving due to a new job.
Regardless of mortgage rates and home prices, Millennials are still going to follow their American Dream, and many view 2013 as the year in which they will begin searching for homes for sale in Chicago.