High Interest Rates Are Millennials’ No. 1 Barrier to Homeownership, According to New Survey

96% of millennials say high interest rates have affected their home-buying plans, and 70% say inflation has affected their plans.

ST. LOUIS, Jan. 10, 2024 /PRNewswire/ — 93% of millennials say the real estate market has impacted their home-buying plans, and 76% are concerned it will get worse for buyers before they buy a home, according to new research from Real Estate Witch, an online publication owned by Clever Real Estate that connects readers with expert real estate advice.

Half of millennials (50%) who plan to buy a home before the end of 2024 say high interest rates are a barrier to homeownership, and 67% regret not purchasing a home when rates were lower.

Surprisingly, more than 3 in 4 millennial home buyers (78%) would consider accepting an interest rate that’s higher than the national rate of about 7% — 65% would accept an interest rate of 10% or more, while 23% would accept a rate of 15% or more.

Millennials may be willing to accept a high interest rate because 68% plan to refinance if rates decrease.

In an effort to limit upfront costs, 47% of millennials plan to put down less than 20% on a home. Financial concerns run rampant, with one in four millennials (25%) worrying they won’t qualify for a mortgage. Alarmingly, the percentage of millennials who have $10,000 in debt (57%) is more than double the percentage who have $10,000 in savings (25%).

The study revealed a sense of desperation among prospective millennial homebuyers, with most open to purchasing homes with major issues such as asbestos (67%), mold (62%), and foundation issues (58%).

Even more, 79% of millennials would pay above the asking price to beat the competition for their dream home — down from 85% who said the same in 2023.

Unsurprisingly, 90% of millennial homeowners have regrets about their first home purchase, up from 82% in 2023. Common regrets include a less-than-ideal location (27%), problematic neighbors (26%), and high interest rates (25%).

Read the full report at: https://www.realestatewitch.com/2024-millennial-home-buyer-report/

About Real Estate Witch

Real Estate Witch is a web property of Clever Real Estate, an online platform that connects home buyers and sellers with top-rated agents at a discounted rate.

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Nicole Lehman
PR Strategist
Clever Real Estate

SOURCE Real Estate Witch