In one study by Fannie Mae, 1,000 millennials were surveyed – half of whom bought homes and half of whom had not yet bought a home. Of those that had bought homes, the percentage that were satisfied with having bought a home increased since last time the survey was administered. However, of those who had not bought homes, the majority still wanted to own a home, but the number had dropped since last time the survey was administered.
What do these results mean? Are millennials more interested or less interested in owning homes? This is an important question, because the answer will define the future of the industry in profound ways. And I'm not totally sure what to think myself. But I do have some thoughts.
First, while the percentage is shrinking, the majority of millennials who don't own a home still want to own one. To me, that says there is still home for keeping the American dream alive. Beyond that, though, those who have become homeowners are becoming increasingly more satisfied with their purchases. Another way of saying it is that millennials believe that don't want homes until they get them--then they are glad they took the step.
Perhaps this is merely a problem of education. Maybe the mortgage industry simply needs to do a better job at educating young people on the value of homeownership.
Rather than brushing off homeownership as materialistic, perhaps we need to redefine it in the minds of millennials as a token of fiscal responsibility and social stability.
Whatever the case may be, I think it's important for us to continue to monitor what millennials think--they alone will determine the future of the mortgage industry.
David Lykken is 40-year industry veteran who has been an owner operator of three mortgage banking companies and a software company. As co-founder and Managing Partner of Mortgage Banking Solutions, David consults on virtually all aspects of mortgage banking with special emphasis executive leadership development, corporate strategic direction and implementation as well as mergers & acquisitions. A regular contributor on CNBC and Fox Business News, David also hosts a successful weekly radio program called “Lykken On Lending” (www.LykkenOnLending.com) that is heard each Monday at noon (Central Standard Time) by thousands of mortgage professionals. Recently he started producing a 1-minute video called “Today’s Mortgage Minute” that appears on hundreds of television, radio and newspaper websites daily across America.
There have been many studies released lately about the attitudes millennials have that are different than those of the previous generation. There have even been a few studies discussing how millennials feel about owning a home. While some studies have suggested that millennials are less materialistic than their parents, there is some research suggesting that millennials still want to be homeowners.