by Mike ‘Mish’ Shedlock
Millennials want to buy a home but underestimate how much they need for a down payment.
Expectations vs. Reality Gap
The Expectations vs. Reality Gap is huge when it come to millennials desire to own a home.
In a nationwide survey of nearly 7,000 prospective homebuyers, Point2 found that 74% of the Millennials who are interested in purchasing a home would like to do so in the next 12 months. However, 88% of respondents between 25 and 40 years old have significantly less in savings than the average national down payment amount, which is $62,600. Moreover, 14% of the Millennials surveyed stated that they hadn’t managed to set aside anything at all, meaning that the desire to buy a home might be in conflict with Gen Y’s budgetary realities.