The Home Buyers of Tomorrow

The Home Buyers of Tomorrow
September 8, 2016 Azad Amir-Ghassemi Research Analyst

Methodology Online Only Survey conducted from January February 2016 1871 respondents: 633 Emerging Millennials (18-25); 686 Older Millennials (26-33); 552 Gen-Xers (33-39) Respondent quotas were matched to Census ACS 2014 rates based on race/ethnicity, renter/owner occupied housing status Post-survey stratified weighting was applied due to male undersampling Raked matched to California survey types

California Housing Price Index
Historically long run home prices have appreciated well for California residents August 30, 2016. SERIES: All-Transactions House Price Index for California [CASTHPI] SOURCE: US. Federal Housing Finance Agency

California Homeownership Rate
US. Bureau of the Census, Homeownership Rate for California [CAHOWN], retrieved from FRED, Federal Reserve Bank of St. Louis; September 8, 2016. SERIES: Homeownership Rate for California [CAHOWN] SOURCE: US Census Bureau

CA Homeownership Rate by Age
40% 50% 60% 70% 80% 2005 2008 2010 2012 70 + 52-70 37-51 24-36 SOURCE : Census ACS year IPUMS U. MINNESOTA

But is there hope?

Change in US Income Distribution

California

But is there hope? Recession Job Losses: 8.8 million
Since Jan’10: million MONTH TO MONTH CHANGE in more formatting options : 1 month net change Also in US Nonfarm Employment.xls, column I. SERIES: Employment Growth SOURCE: US Bureau of Labor Statistics 9

Job Growth, California leads nation
ANNUAL PERCENT CHANGE Still supply woes SERIES: Total Nonfarm Employment SOURCE: US Bureau of Labor Statistics, CA Employment Development Division

Large Differences Across Ethnicities
Future of California Large Differences Across Ethnicities

California Population Age Cohorts
7.6 M Boomers 7.4 M Gen-X Millenials 25 50 75 AGE SOURCE : Census ACS year IPUMS U. MINNESOTA

California White Population Age Cohorts
3.1 M Boomers 2.8 M Gen-X 1.9 M Millenials 25 50 75 AGE SOURCE : Census ACS year IPUMS U. MINNESOTA

California Hispanic Population age Cohorts

California Black Population Age Cohorts

CA Homeownership Rates by Race / Age
24-36 37-51 52-70 40% 60% 80% 2005 2008 2010 2012 ASIAN BLACK HISPANIC WHITE SOURCE : Census ACS year IPUMS U. MINNESOTA

Household Characteristics
Who Are Millennials Household Characteristics

Age Difference Matters - Adult vs. Emerging Millennials
0% 2% 4% 6% 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 n: 1319 mean : median: 26 What is your age? Generations and Cohorts generations Marketing tool invented by some advertisers Meaningful cohorts, such as: the people who graduated college during the Great Recession, people who introduced the Internet to their parents, and so on. Split Millennials into two categories "Under 25" and "26-33"

Respondent Demographics : Education
8% 0% 29% 18% 5% 2% 30% 3% 6% 10% 20% Some high school High school Some college Vocational/technical school Associates Degree Four-year college Master's Degree Professional Degree Doctorate n: 1319 What is the highest level of education you have completed?

Emerging Millennials are still in school
1% 4% 12% 25% 35% 7% 9% 8% 36% 22% 2% 0% 10% 20% 30% Some high school High school Some college Vocational/technical school Associates Degree Four-year college Master's Degree Professional Degree Doctorate Emerging Adult n: 1319 What is the highest level of education you have completed?

Half of Millennials are second generation
52% 39% 9% 0% 10% 20% 30% 40% 50% Both Parents Neither Parents One Parent n: 1319 Were your parents born in the United States?

Parent place of birth split by white/black and asian/latino
10% 78% 12% 87% 8% 5% 33% 56% 11% 85% 2% 13% ASIAN WHITE LATINO BLACK 0% 25% 50% 75% Both Parents Neither Parents One Parent Split By Ethnicity; n: 1301 Were your parents born in the United States?

Self-Reported Household Income
24% 27% 15% 14% 9% 7% 3% 1% 0% 10% 20% Zero/NA < $35,000 $35, ,000 $50, ,000 $75, ,000 $100, ,000 $150, ,000 > $300,000 n: mean :$ median :$ 49000 What is your annual household income?

Household Income Varies Dramatically by Renter / Owner
31% 14% 34% 18% 17% 11% 6% 3% 13% 1% 5% 0% 2% 10% 20% 30% Zero/NA < $35,000 $50, ,000 $150, ,000 > $300,000 Owner Renter n: Renter: Owner : 520 Median Renter HH Income :$ Median Owner HH Income :$ 55000 Mean Renter HH Income :$ Mean Owner HH Income :$ What is your annual household income? $35, ,000 $75, ,000 $100, ,000

Homes / Living Situations
Who Are Millennials Homes / Living Situations

Emerging vs. Adult Millennials Represent Different Populations
Emerging (18-25) and Adult Millennials (26-33) are in different life stages, different living situations, and express different housing behaviors and needs. Emerging Millennials are much more likely to live with family, are less familiar with the local and state housing market (rental and purchase). Adult Millennials who live at home, are more likely to live in renting households.

Emerging vs Adult Millennials General Information
37% of all Millennials live with family (with parents / grandparents). 47% of Emerging Millennials live at home. But only 26% of Adult Millennials do.

37% of all Millennials live with family
63% 37% 0% 20% 40% 60% 80% Not with Family With Family Split by Millennials Living with Family, N: 1319 What is your living situation? With family means living in the home of parents / grandparents / other family

47% of emerging Millennials live with family, v
47% of emerging Millennials live with family, v. 26% of Adult Millennials 53% 47% 72% 28% Emerging Adult 0% 20% 40% 60% 80% Not with Family With Family Adult vs Emerging Millennials by Family Type n: 1319 What is your living situation?

Who do you live with By late 30s, 59% will live with a spouse / partner Across all age groups, a low percentage indicate living with parents 14% of Emerging millennials live with roommates, v. 4% of younger Gen-Xers 14% of Emerging millennials live alone, v. 22% of younger Gen-Xers Respondents can answer yes to multiple types so will not sum to 100%

35% of all Millennials live with a spouse; 17% live alone; 11% live with 'roommates'
37% 35% 16% 11% 7% 0% 10% 20% 30% 40% Live With Family With Spouse / Partner Alone With Roommates Parent With Me With Boyfriend / Girlfriend N: 1319 What is your living situation? Can answer yes to more than one option - ie. live with parents and with spouse

% living alone rises, % living with family drops, % living with a spouses rises fast
59% 48% 21% 17% 28% 47% 22% 18% 14% 4% 8% 6% 7% 0% 20% 40% 60% With Spouse / Partner Live With Family Alone With Roommates Family With Me With Boyfriend / Girlfriend Emerging Adult Younger Gen-X N: : 1319 What is your living situation? Detailed

Millennials 'Living With Family's' Ownership status
~42% of all Emerging and Adult Millennials (both living With Family, and not) live in owner-occupied housing Emerging and Adult Millennials living 'With Family' as likely to be in owner-occupied housing 53% of Adult Millennials with Family Live in owner-occupied housing 58% of Emerging Millennials with Family Live in owner-occupied housing

42% of Respondents live in Owner occupied households
58% 0% 20% 40% 60% 80% Owner Renter n: Renters: 722, Owners: 597 What is the current housing situation of the household or place you are in?

Renters are more likely to live alone
33% 40% 11% 2% 10% 4% 32% 23% 18% 15% 5% 8% Owner Renter 0% 20% 30% Spouse / Partner With family Alone Roommates Family with Me W/ boyfriend / girlfriend With Family Split by Renter / Owner; n: 1319 Do any of these options fit your household?

Millennial who do 'Not Live With Family's' Household Ownership Status
Adult Millennials not living at home are slightly more likely to be home-owners. Most Millennials who do not live with their families Rent. 29% of Emerging Millennials Own, v. 37% of Adult Millennials. But! Remember that there are more adult millennials who do not live at home.

Not living with family : Adult Millennials more likely to own than Emerging
29% 71% 37% 63% Emerging Adult 0% 20% 40% 60% 80% Owner Renter Millennial Respondants, 'Not Living with Family N: Adult Millennials: 522 Emerging Millennials: 330 What is the current housing situation of the household or place you are in? But remember there are also many more Adult millennials living on their own than Emerging millennials!

Millennials: their homes

Most Live in Single Family Homes
52% 31% 10% 4% 2% 1% 0% 20% 30% 40% 50% Single family home Apartment Townhome / Duplex / Triplex Condo Other Mobile Home n: 1319 What type of home do you reside in? Half in SFH 44% in apt / MF housing

60% of Millennials who live with family, live in SFHs
20% 40% 60% Single family home Apartment Townhome / Duplex / Triplex Condo Other Mobile Home Not with Family With Family Split By Region; n: 1319 What type of home do you reside in? Breaking out by with family and not…

Current Home Location 48% 28% 11% 10% 3%
20% 30% 40% 50% Suburb City outside Downtown Rural Area Downtown in a City Other n: 1319 What best describes your home's location? Half in suburb / suburb types 40% in city/ urban 10% in rural

55% of millennial households have been living in a place 3 years or less
25% 31% 12% 8% 6% 10% 0% 20% 30% < 1 years 1-2 years 3-4 years 5-10 years years years 21 to 25 years n: 1319 How long have you lived in your current home?? But once you break this out…

Renters move more frequently
33% 14% 36% 25% 11% 13% 7% 10% 4% 12% 2% 15% 0% 20% 30% < 1 years 1-2 years 3-4 years 5-10 years years years 21 to 25 years Owner Renter n: 1319 How long have you lived in your current home??

Millennials either have lived with family for a long time, or by selves for short periods
0% 10% 20% 30% 40% < 1 years 1-2 years 3-4 years 5-10 years years years 21 to 25 years Adult Mill'n not w/ Family Adult Mill'n w/ Family Emerging Mill'n not w/ Family Emerging Mill'n w/ Family n: 1319 How long have you lived in your current home?? A little busy / confusing But shows that there is a giant gulf between those living with family and those not

Belief in American Dream / Homeownership
What is millennials relationship with homeownership?

American Dream 34% 31% 25% 6% 4% 0% 10% 20% 30% Not at All Important
Of Little Importance Moderately Important Important Very Important Please answer on a scale of 1 to 5, with 1 being not at all important and 5 being very important? n: 1270 How important is fulfilling the 'American Dream' to you?

American Dream - Most Important Factors
17.8% 17.5% 16.4% 13.9% 12.5% 11.4% 10.4% 0% 5% 10% 15% A fulfilling job Owning a home Having a family Education Seeing the world Helping others Becoming wealthy Select All That Apply n: 1319 Which factors contribute to your ideal of the `American Dream` And you need a job to get a home #1 and #2 things that predict homeownership is having a family

Is Purchasing a Home A Safe Investment? For almost all respondants yes
1% 5% 12% 45% 37% 0% 10% 20% 30% 40% Strongly Disagree Disagree Neighter Agree nor Disagree Agree Strongly Agree n: 1208 Do you believe that purchasing a home is a safe investment?

House Purchase Characteristics
Owners Questions House Purchase Characteristics

First Time Buyer 15% 85% 0% 20% 40% 60% 80% No Yes n: 225 Millennial Owners - Was this your first house purchase?

Original Purchase Price - Millennial Buyers
0% 5% 10% 15% $0k - 100k $100k - $149k $150k - 199k $200k - $299k $300k - $399k $400k - $499k $500k - $599k $600k - $699k $700k - 999k $1000k + Millennial Personal Purchase Price n: mean : median : What was the original purchase price of the house?

Value Change 0% 5% 10% 15% 0% - 4% 5% - 14% 15% - 24% 25% - 32%
33% - 49% 50% - 74% 75% - 99% 100% - 124% 125% - 149% 150% - 199% 200% - 249% 250% + n: 225 Are you waiting for your home value to increase to a specific amount before selling?

How Long Do you Plan To Keep This Home
1% 12% 10% 35% 19% 9% 5% 0% 20% 30% 0 years 1-3 years 4-5 years 6-10 years years years 21 to 25 years 25 to 30 years n: 225 How long do you plan to keep this home?

Most Important Reason for Purchase
23% 15% 12% 9% 5% 3% 0% 10% 20% Affordable price Tired of renting Change in family status Desired better/other location Desired larger home Cheaper than renting Take advantage of rising home prices Investment/Tax advantages Other School System Favorable financing n: 255 What was the most important reason for buying this home?

Family support

Home Purchase : Parental Help with Millennial Renter
21% of Millennial Renters say that family has offered to help with home purchase. No reported difference between Renters living by themselves and those living with family.

Renters : Offer of Purchase Help From Family
80% 20% 0% 40% 60% No Yes Answered Yes to Either Help With Downpayment or Mortgage : n: 324 Have your parents or other family offered to help with a home purchase?

Millennials - Home Purchase Help from Parents
California home-buyers get help from their parents into their 40s to purchase Parental help varies widely among ethnic groups Non-white parents with the means to help, do while children are younger

Owners : Purchase Help From Family
36% 35% 34% 25% 0% 10% 20% 30% Emerging Millennial Adult Millennial Younger Gen-X Older Gen-X Owners : Answered Yes to Either Help With Downpayment or Mortgage : n(Millennial): n(GenX): 16 Did your parents or other family provide financial support with any of your home purchases in the past?

Owners by Ethnicity: Purchase Help From Family
34% 43% 52% 37% 26% 33% 32% 31% 16% 29% 27% 40% 17% 20% 50% 0% 10% 30% ASIAN WHITE LATINO BLACK Emerging Millennial Adult Millennial Younger Gen-X Older Gen-X Owners : Received Help with Downpayment or Mortgage : n: 2520 Did your parents or other family provide financial support with any of your home purchases in the past?

So what about Renters

Why aren't renters buying
Overwhelmingly #1 reason is affordability. Affordability, mortgage qualification climbs over age groups. Not ready to buy, ease of renting, lack of job drop, each drop by half over time.

Most Important Reason For Not Owning? ... Affordability
50% 17% 8% 7% 5% 4% 3% 0% 10% 20% 30% 40% Can't afford to buy / downpayment Can't purchase where I want Can't qualify for a mortgage Don't have a job It's easier to rent Not ready to buy Other Too costly to maintain Select Your Most Important Reason n: 704 Why do you rent instead of buying? Affordability is the most important reason holding back purchases.

Most Important Reason For Not Owning for Adult renters? ... Affordability
54% 52% 48% 10% 15% 19% 12% 6% 2% 5% 9% 4% 3% 0% 20% 40% Can't afford to buy / downpayment Not ready to buy Can't qualify for a mortgage It's easier to rent Don't have a job Other Can't purchase where I want Too costly to maintain Emerging Millennial Adult Millennial Younger Gen-X By Age Group - Select Your Most Important Reason n: 704 Why do you rent instead of buying? Changes as you expect, not ready to buy goes down Reality… bites

Total Rent 22% 19% 12% 8% 6% 5% 4% 2% 0% 10% 15% 20% NA $0 - 249
$ $ $ $ $ $ $ $ $ $5000 + n: mean :$ median :$ 1200 How much is the total rent of your apartment or house? (excluding utilities)

Respondent Share of Rent
29% 8% 22% 18% 13% 3% 4% 1% 2% 0% 10% 20% 30% NA $ $ $ $ $ $ $ $1750 + n: mean :$ median :$ 525 How much do you pay for monthly rent of your apartment or house? (excluding utilities)

Searching for a home (here or elsewhere?)

Active Home Search Is Dictated by Household Formation
Millennials with Partners/Spouses are likely to be actively searching for new housing. Multi-Generational households (respondent with family / family with respondent) also actively searching. Millennials living with roommates, or living alone are less likely to be looking.

Housing Search in Last 6 Months?
43% 56% 0% 20% 40% Owner Renter Pct Answer Yes: Renter/Owner; n: 1319 Have you actively looked for housing in the past 6 months? Renters more likely to be searching for new housing (rentals or purchases)

Fully formed Millennial Households are much more likely to be actively searching
50% 42% 30% 16% 12% 8% 0% 10% 20% 40% Parent With Me With Spouse / Partner Live With Family Alone With Roommates With Boyfriend / Girlfriend Pct Answer Yes: Household Type; n: 1319 By Household Type - Have you actively looked for housing in the past 6 months? Multi-generational households are also actively looking for housing

Where will your next home be?
38% 19% 14% 11% 8% 1% 0% 10% 20% 30% Same county Same city Another CA county Same neighborhood Don't plan to move Another state Renters + Owners; n: 318 Where do you plan your next home to be? Don't know / unsure

Owners Don't Plan to Move
39% 33% 23% 16% 14% 10% 9% 11% 4% 12% 2% 1% 0% 20% 30% 40% Same county Same city Another CA county Same neighborhood Another state Don't plan to move Don't know / unsure Owner Renter Split by Renters-Owners; n: 318 Where do you plan your next home to be?

Getting Out of Town : Why are you moving? 40% cost of living / housing
23% 17% 14% 12% 7% 6% 1% 0% 5% 10% 15% 20% Cost of living Housing prices are too high College / School New economy is stronger Commute too long Employer driven relocation School system for children Got job out of state Taxes Retirement Answered 4 or 5 out of 5 in rated seriousness; n: 139 Why are you planning to move out of your current city / county?

Getting Out of Town : Affordability and college
25% 21% 18% 15% 3% 26% 10% 16% 8% 6% 7% 5% 2% 0% 20% Cost of living Housing prices are too high College / School New economy is stronger Taxes Commute too long Employer driven relocation School system for children Got job out of state Retirement Emerging Adult Answered 4 or 5 out of 5 in rated seriousness; n: 139 Why are you planning to move out of your current city / county / state? Indications that breaking into CA job market is harder for young Millennials

Home Purchase Decisions
When do you plan to purchase

And the pokemon?

Homeownership Decisions and Knowledge
Millennials living with their family are much more unsure of their future life decisions. 33% compared to 18% who live outside the family home don't know when they will buy a house. 23% of Millennial Owners are looking to move out of their starter homes within next year. Yet, 27% of Millennials who have purchased claimed that student debt delayed homeownership.

33% of Millennials who live at home do not know when they will purchase.
11% 15% 36% 44% 17% 22% 3% 2% 33% 18% 0% 10% 20% 30% 40% Within 12 months Within 1 to 5 years After 5 years Never Not With Family With Family All Millennials by Family Type (either as a home or as an investment property) n: 1118 When do you plan to purchase your next house? Don't know / Not Sure 33% compared to 18% who live outside the family home do not know when they will buy a house

Millennials not w/ family : 23% of Owners want to purchase within a year
11% 23% 47% 36% 21% 24% 1% 4% 20% 14% 0% 10% 30% 40% Within 12 months Within 1 to 5 years After 5 years Never Don't know / Not Sure Owners Renters Not With Family - Renters and Owners ; (either as a home or as an investment property) Millennials Not Living With Your Family: When do you plan to purchase your next house? Additional 36% of owners want to purchase within 1-5 years"

43% of Millennials living with parents ready within 1-5 years
10% 13% 33% 43% 17% 1% 5% 38% 22% 0% 20% 30% 40% Within 12 months Within 1 to 5 years After 5 years Never Owners Renters Living With Family - Renters and Owners; (either as a home or as an investment property) Millennials Living With Your Family: When do you plan to purchase your next house? Don't know / Not Sure

All Millennials - Desired Home Features: Commute, Friends, SFH
14% 13% 12% 11% 10% 8% 7% 6% 4% 3% 1% 0% 5% Close to Work Close to friends / family Single family home Lots of land / big lot Close to children's school Close to any location based amenities View Suburban location Live/work `loft' space Urban location Rural Location High rise building Don't know / unsure n: 1319 Which of the following features would you like to have in your ideal home?

Emerging Millennials - want slightly more 'urban living' amenities, adults - more Single Family Homes 13% 14% 11% 10% 8% 7% 6% 3% 4% 2% 1% 0% 5% 15% Close to Work Close to friends / family Single family home Lots of land / big lot Close to children's school Close to any location based amenities View Suburban location Live/work `loft' space Urban location Rural Location High rise building Don't know / unsure Emerging Adult Split by Younger / Older Millennials; n: 1319 Which of the following features would you like to have in your ideal home?

Life home Decisions Moving to the Suburbs?

Move to the Suburbs - All Millenials
30% 27% 43% 0% 10% 20% 40% Yes No No, we have good schools n: 1319 Do you think you will need to 'move to the suburbs,' particularly for schools?

Move to the Suburbs - All Millenials Split by Children
25% 34% 26% 27% 49% 39% 0% 10% 20% 30% 40% 50% Yes No No, we have good schools No Children Has Children Households with Children vs Households without Children n: 1319 Do you think you will need to 'move to the suburbs,' particularly for schools?

Life Decisions - Parents
29% 4% 28% 33% 0% 10% 20% 30% Yes, I will Yes, I have in the past No Unsure n: 1319 Will you take elderly parents or grandparents into your home in the future ?

Life Decisions - Parents Split by Ethnicity
48% 30% 20% 41% 4% 1% 28% 33% 19% 16% 32% 38% 37% 11% 7% 6% 2% 0% 10% 40% 50% Yes, I will Yes, I have in the past No, I don't think I will need to Unsure Not applicable ASIAN WHITE LATINO BLACK n: 1319 Will you take elderly parents or grandparents into your home in the future ?

Spurs to Get in the game, Renters and Owners

Renters : What would Spur you to Buy?
37% 18% 14% 8% 5% 4% 0% 10% 20% 30% Getting a Job / New Job / Raise Starting a family Finishing school Finding / Marrying Signif. Other Change in family status I don't plan to buy Finish current lease Renters, select any that apply. n: 722 Would any of the following life events spur you into the process of buying a home?

Emerging Renters : Need to finish school
32% 41% 18% 20% 8% 14% 13% 6% 10% 5% 4% 0% 30% 40% Getting a Job / New Job / Raise Starting a family Finishing school Finding / Marrying Signif. Other Change in family status I don't plan to buy Finish current lease Adult Emerging Renters, select any that apply. n: 722 Would any of the following life events spur you into the process of buying a home?

Life Event Spurs for Self-Owning Millennials
29% 26% 23% 11% 19% 12% 10% 16% 3% 13% 6% 2% 0% 20% 30% Getting a Job / New Job / Raise Finish current Mortgage Change in family status Finding / Marrying Signif. Other Starting a family Finishing school Retirement Emerging Adult Either as a home or as an investment property - Self-Owning Millennials Split By Age; Select any that apply. n: 304 Would any of the following life events spur you into the process of buying another home? Jobs, monetary factors are important for both, creating a family for Emerging

Life Event Spurs for Millennials Living With Parents
26% 22% 19% 12% 6% 4% 0% 10% 20% Getting a Job / New Job / Raise Finding / Marrying Signif. Other Starting a family Finishing school Change in family status Finish current Mortgage Retirement Either as a home or as an investment property - Millennials Living With Parents; Select any that apply. n: 293 Would any of the following life events spur you into the process of buying another home?

Life Event Spurs for Owners - Split by Renters / Owners
37% 26% 18% 19% 14% 22% 12% 8% 6% 5% 4% 0% 10% 20% 30% Getting a Job / New Job / Raise Starting a family Finding / Marrying Signif. Other Finishing school Change in family status Finish current Mortgage I don't plan to buy Finish current lease Retirement Owner Renter Select any that apply. n: 1319 Would any of the following life events spur you into the process of buying a home? Jobs are most important single factor for both spurring renters / and owners

What’s holding renters back? Debt??

Debt Worries Many millennials list financial debt as an issue (50% rate as 4-5 in level of challenge) 40% of millennials with 'debt issues' list student debt as the most burdensome, 23% credit cards Emerging Millennials are more likely to see student debt as a significant challenge to home purchase. 50% of Emerging Millennials vs. 33% of Adult Millennials think it's a significant challenge

50% of Debt worriers 27% 23% 22% 12% 7% 6% 0% 10% 20% 1 2 3 4 5
1 2 3 4 5 Answer on a scale of 0 to 5, from 'No Challenge' to 'Significant Challenge' n: 1267 Is financial debt a worry for you?

40% list of debt worriers list student debt as the largest burden
23% 14% 7% 6% 3% 0% 10% 20% 30% Student Credit card Mortgage Auto loan Medical Other Private loan If Rating of Medium-Large Challenge or greater (4-5); n: 670 What kind of debt is the most burdensome for you?

Emerging Millennials are more worried about student debt
33% 49% 25% 21% 17% 9% 5% 7% 6% 3% 0% 10% 20% 30% 40% 50% Student Credit card Mortgage Auto loan Medical Other Private loan Emerging Adult If Rating of 4 or greater selected for debt type; n: 670 What kind of debt is the most burdensome for you? Split by Age

Student Debt and Homeownership
Student Debt is a vocal issue - for some. 75% of all debt worriers say it held them back from homeownership Across ethnicities, 87% of Asian respondents, and 47% of black respondants said student debt was holding them back from buying.

24% of all renting respondants say student debt is holding them back from buying But 27% of Millennials who have purchased claimed that student debt delayed homeownership Still, non-white millennials who have purchased underestimated the effect of student debt on homeownership

Millennial Renters most worried about debt feel constrained by Student Loans
76% 24% 0% 20% 40% 60% Yes No Of all renters who selected Student Debt as Most Worriesome n: 226 Renters : Is your student loan keeping you from exploring home ownership?

But only a minority of all renters feel this is true
24% 76% 0% 20% 40% 60% Yes No Of all renters n: 722 Renters : Is your student loan keeping you from exploring home ownership?

Student Debt and Housing : Owners
27% 73% 0% 20% 40% 60% Yes No Owners not living with family : n: 597 Did student debt of any kind keep you from exploring homeownership sooner?

Student debt is an issue for purchasing today but not. AS BIG
Student debt is an issue for purchasing today but not *AS BIG* an issue as commonly believed 27% 24% 0% 10% 20% Owner Renter Combined Response; n: 1319 Did student debt of any kind keep you from exploring homeownership (renters), or homeownership sooner (owners)?

Savvy buyers become buyers

Renter Market Knowledge
Most Millennial renters do not have a good idea of the current down-payment market 27% of Millennials think 20-25% downpayment required to purchase, 17% think 10-15%. 16% think % Less than 3% know about low down-payment FHA backed environment Yet only 19% knew of FHA 3.5% loans.

Renter Market Knowledge by Ethnicity
20% of Latino renters believe that % down-payment is required for purchase. 2x other ethnicities 70% of all Millennial renters would be more likely to look to purchase if they knew about lower down-payments 82% of Black Millennial renters, 73% of Latinos would be more likely to look to purchase if they knew about lower down-payments

Renters : Knowledge of Home Purchase Process, Down-Payments
1% 0% 2% 3% 17% 6% 27% 9% 5% 16% 10% 20% 0-1% 1-3% 3-5% 5-10% 10-15% 15-20% 20-25% 25-30% 30-40% 40-50% 50-60% 60-70% 70-100% n: 722 In your estimation, how much down-payment is required to purchase a home? Most Millennial renters do not have a good idea of the current down-payment market

Renters : Knowledge of Housing Purchases By Ethnicity
0% 10% 20% 30% 0-1% 1-3% 3-5% 5-10% 10-15% 15-20% 20-25% 25-30% 30-40% 40-50% 50-60% 60-70% 70-100% ASIAN WHITE LATINO BLACK Response by Renters; n: 722 In your estimation, how much down-payment is required to purchase a home? 20% of Latino renters believe that % down-payment is required for purchase. 2x other ethnicities

Renters : Knowledge of Downpayments
69% 31% 0% 20% 40% 60% Yes No n: 722 If You knew you could qualify with lower downpayment, would you start to look for a house? 70% of all Millennial renters would be more likely to look to purchase if they knew about lower down-payments

Renters : Knowledge of Downpayments By Ethnicity
63% 73% 82% 0% 20% 40% 60% 80% ASIAN WHITE LATINO BLACK Split by Ethnicity; n: 722 If You knew you could qualify with lower downpayment, would you start to look for a house? 82% of Black Millennial renters, 73% of Latinos would be more likely to look to purchase if they knew about lower down-payments

Renters : Knowledge of FHA Loans
19% 81% 0% 20% 40% 60% 80% Yes No Were you aware of such loans? Renters : n: 722 Federal Housing Administration (FHA) backed loans only require a 3.5% down-payment... 19% claim to be aware of 3.5% FHA backed loans.

Renters : Knowledge of FHA Loans by Ethnicity
14% 25% 17% 19% 0% 5% 10% 15% 20% ASIAN WHITE LATINO BLACK Were you aware of such loans? n: 1319 Federal Housing Administration (FHA) backed loans only require a 3.5% down-payment

Short Term Rental Hosting

Airbnb Hosting ~ 10% of Millennial Respondants have used homesharing services Airbnb/VBRO/Craigslist/etc as a host Another 10% of Millennials have seriously considered hosting. Renters and owners are equally likely to host. Most hosts live in the suburb, but most people live in suburbs. 45% of Renters and 75% of Owners have thought about purchasing a home as a short term rental.

Have You Used Your Home For Homesharing
10% 82% 7% 0% 20% 40% 60% 80% Yes No No, but considering n: 1319 Have you used your residence as a short term rental

Homesharing hosts are equally SFHs and Apartments
47% 38% 8% 5% 1% 0% 10% 20% 30% 40% Single family home Apartment Townhome / Duplex / Triplex Condo Mobile Home Type of House of Respondents who have hosted; n: 123 Have you used your residence as a short term rental?

But as a proportion of users respondents in Suburbs are less likely to host
16% 13% 11% 8% 0% 5% 10% 15% Rural Area Downtown in a City City outside Downtown Suburb Pct. of Respondents in Each Location Type Who Have Hosted ; n: 123 Have you used your residence as a short term rental?

Majority of hosts have thought about purchasing for homes-hare use
55% 45% 0% 20% 40% Yes No All Respondents Who Have Used AirBNB; n: 123 Have you thought about purchasing a property to use primarily for short term rentals

70% of Owner hosts / 45% of renters have thought about purchasing for home-sharing
71% 46% 0% 20% 40% 60% Owner Renter Pct of Respondents who answered yes.; n: 204 Have you thought about purchasing a property to use primarily for short term rentals 70% of Owner hosts have thought about purchasing just for hosts

2:00 PM – 3:00 PM To register: WWW.CAR.ORG/MARKETDATA/VIDEOS
“2017 California Economic & Market Forecast” Tuesday, October 18, 2016 2:00 PM – 3:00 PM To register:

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