According to a recent survey on US property-buying trends, 69% of millennials and young adults save from their salaries to acquire their first home, while the rest either have inheritances or family support, cash in retirement funds early or have made money by selling off their cryptocurrency portfolios.
The survey, which was published this week by Nasdaq-listed real-estate brokerage Redfin, questioned 2,000 US residents in March to understand today’s property-buying perspectives and concerns.
The survey found that the top house-buying concerns for millennials, defined as people aged 24 and 38, who said they planned to buy their first home in the coming year was primarily having enough money for a down payment. This was followed by worries about affording a home in their preferred location and then by rising property prices
Thirty-six percent had to rely on earnings from a second job to make a down payment, 13% pulled money out of retirement funds early, 24% were lucky enough to have received a cash gift from their family, and 12% got an inheritance, while 10% said they had sold off holdings of Bitcoin, Ether or other crypto assets.
When broken down by household income levels, there were some notable differences in how millennials saved for a down payment. Millennials in households earning more than US$100,000 per year were less likely than those earning less to have saved directly from paychecks, with 60% of high-earners having done so, compared with 75% of those who earn less than $100,000.
Millennial households earning more than $100,000 were more likely to have received an inheritance or cash gift from family or to have dipped into their retirement savings. They were also twice as likely to have sold stock investments and three times as likely as their less well-off peers to have sold cryptocurrency investments.
Please contact us with feedback, news or stories: firstname.lastname@example.org