New figures out from HSBC show some unexpected and interesting figures on how millennials around the world are dealing with homeownership.
And according to one billionaire, the big barrier for some includes avocados and coffee.
“When I was trying to buy my first home, I wasn’t buying smashed avocado for $19 and four coffees at $4 each,” said Tim Gurner, a billionaire luxury real estate developer in Australia.
According to the Daily Caller, while adults in America born after 1980 are slower to buy their first home than their parents, even with access to better rates and more credit, the situation in Australia is worse: millennials are second to last worldwide in homeownership.
And Gurner has some serious “dad” style advice to help them along.
“You have to start to get realistic about your expectations,” said Gurner.
“There is no question we are at a point now where the expectations of younger people are very, very high. The people that own homes today worked very, very hard for it, saved every dollar, did everything they could to get up the property investment ladder.”
“Young people want to eat out every day, they want to travel to Europe every year,” Gurner continued. “This generation is watching the Kardashians and thinking that’s normal. Thinking that owning a Bentley is normal, that owning a BMW is normal.”
China Winning?
The study from HSBC, entitled “Generation Buy,” breaks out millennial homeownership figures from countries around the world, showing that an average of 40 percent of millennials own their home, and a whopping 83 percent intend to buy within the next five years.
The nation that’s leading that charge may surprise you: China.
70 percent of Chinese millennials already own their homes, with 91 percent planning to buy a house within the next five years. Mexico came in second in the study at 46 percent and France finished third with 41 percent.
“This study challenges the myth that the home ownership dream is dead for millennials around the world,” said Louisa Cheang, HSBC’s Global Head of Retail Banking.
“With four in ten already owning their home, the dream of home ownership for millennials is definitely alive and kicking. The greatest challenges are in those countries where there is a perfect storm of stagnating salaries and rising house prices – for millennials in those countries, the dream, while not dead, looks set to be deferred.”
Millennials and Manufactured Housing
Many of the challenges and desires of millennials read like a list tailor-made for modern manufactured homes. Greener, more affordable, a choice of sizes, styles and customizable floor plans.
Millennials “…represent an ‘Oh, shift’ moment in housing,” said Jonathan Smoke, chief economist for Realtor.
“Many desire to move from renting to owning, but often struggle to find that a real possibility in the current site-built market. The manufactured housing industry can offer a solution to that problem,” said millennial Lindsey Bostick of Bostick Homes.
Bostick has lived in several kinds of housing, and now is a manufactured homeowner herself, so she knows.
“Today’s manufactured homes can look and live like a conventional, site-built house, and can be half the price of new construction. Additionally, many manufactured homes are Energy Star rated, so they are more efficient than older, existing homes,” the university-graduated Bostick said.
For more on millennials and their desire for quality, affordable housing, click here. ##
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Submitted by RC Williams to the Daily Business News for MHProNews.
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