Millennials have experienced plenty of financial obstacles standing in between them and stronger homebuying activity, but a new report predicts their greater investment in housing in 2019.
Survey data from homebuying platform Clever Real Estate finds that while more Millennials are going to gain greater power in the real estate market, their spending leans conservative. Approximately 30 percent of hopeful Millennial buyers intend to spend between $100,000 and $199,999; 27 percent say their budget is between $200,000 and $299,999. CNBC reports that 5 percent of Millennial respondents say they plan to spend $500,000 or more. "This makes sense, considering that millennials are still relatively new to the workforce and lack the spending power of older generations," the survey says.
It's worth noting that Clever's definition of millennials skews young, [aged 18 to 34 years] which could affect conclusions about their purchasing power. Pew Research Center's widely accepted definition says Millennials are those aged 23 to 38. Regardless, the steep cost of buying a home has been shown to pose a problem for younger buyers in numerous surveys.
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