Nashville-Area Millennials Place Homeownership Above Other Life Priorities

Many Nashvillians Planning First Home Purchase, but Persistent Homebuying Myths Hold Back Others

Nashville’s millennials are straying from the norm as they redefine life’s priorities, according to the latest Bank of America Homebuyer Insights Report. Eighty percent of local millennials say owning a home is a top priority, nearly tied with being able to retire (82 percent) and far outranking getting married (59 percent) and having children (47 percent).

The report, which explores the attitudes, preferences, and behaviors of the modern homebuyer, also finds that many local millennials equate homeownership with personal (64 percent) and financial (53 percent) success. Prospective millennial buyers in Nashville also associate purchasing a home with maturity (56 percent), adulthood (55 percent) and independence (46 percent).

Additional Nashville-specific highlights from the report include:

Renter’s reservations: a reality check on common homebuying myths

• Local renters in Nashville are torn on the “own vs. rent” debate. While 69 percent believe that renting long-term will be more expensive than buying a home, the other 31 percent say it will be just as or less expensive than owning.

• Yet, 65 percent believe their rent will continue to rise every year or every other year. And 46 percent pay more than 30 percent of their income in rent each month.

• When asked what they dislike about renting, Nashvillians (56 percent) are significantly more likely than their national counterparts (43 percent) to say “not feeling like it’s truly home.” They’re also more likely to feel like they’re throwing money away (60 percent vs. 49 percent), and they dislike rising rental costs as much as their national counterparts (53 percent vs. 52 percent).

• Top renter misconceptions in Nashville include:
- Forty-six percent believe that 20 percent down is required to buy a home
- Thirty-five percent believe they must pay private mortgage insurance if they don’t put 20 percent down
- Nearly one-third believe they need to have a “perfect” credit score to be considered for a mortgage

The five Ws of homebuying: Prospective buyers in Nashville are being purposeful in their homebuying planning

Who: While 62 percent of first-time local buyers plan to buy with a spouse or partner, others are venturing out on their own, as 33 percent say they plan to purchase their first home solo.

What: When thinking about their first home, buyers in Nashville prefer:
- A starter home (55 percent) vs. a forever home (45 percent)
- A large backyard (56 percent) vs. more square footage (44 percent)
- A modern layout (58 percent) vs. a home with “good bones” (42 percent)
- Updated appliances (75 percent) vs. an updated exterior (25 percent)

Where: 51 percent are looking to stay in the Nashville area, while 31 percent plan to buy elsewhere.

When: 49 percent of local residents plan to buy in the next two years, and 75 percent say saving for a down payment is a financial priority.

Why: Nashvillians say having enough money saved (64 percent) and a higher salary (42 percent) are their top motivations to buy for the first time.

10/10/18


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