Rising rents and improving job prospects are driving real estate purchases by millennials, but down payments remain a struggle, according to a survey conducted by Endeavor America Loan Services.

Enjoy the Connect experience from your computer, laptop or tablet! Watch Connect now.


Takeaways:

  • Down payments remain a struggle for millennial real estate clients.
  • On average, millennials contributed a down payment of 4.6 percent when purchasing a home during 2014 and early 2015.
  • More than 41 percent of respondents used a co-borrower to qualify for home financing.

Rising rents and improving job prospects are driving real estate purchases by millennials, but down payments remain a struggle, according to a survey conducted by Endeavor America Loan Services.

The survey found that on average, millennials contributed a down payment of 4.6 percent when purchasing a home during 2014 and early 2015.

This low percentage means a number of the 5,404 millennials surveyed had to turn to family members for help.

More than 41 percent of respondents used a co-borrower to qualify for home financing. Additionally, 20 percent of millennials surveyed received some form of assistance from a family member for the down payment of their home.

[Tweet “More than 41% of millennials used a co-borrower to qualify for home financing.”]

Millennials, on average, took out an $182,879 loan, with an average loan-to-value of 95.4 percent. The average credit source of respondents was 664.

Single-family homes are the primary choice of millennials, as nearly 72 percent purchased this type of residence. More than 18 percent purchased a townhome or condo.

Only 3 percent acquired a two- to four-unit apartment building, with nearly 7 percent buying a manufactured home.

Endeavor predicts an accelerating millennial real estate boom.

“Millennials are maturing, recovering from the recession and forming families,” said Darius Mirshahzadeh, CEO of Endeavor. “They also invested heavily in higher education and are growing in their careers. All of these factors point to what we are now seeing — millennials flooding into the housing market.”

The average age of millennials surveyed was 28.

Email Erik Pisor.

Show Comments Hide Comments
Sign up for Inman’s Morning Headlines
What you need to know to start your day with all the latest industry developments
By submitting your email address, you agree to receive marketing emails from Inman.
Success!
Thank you for subscribing to Morning Headlines.
Back to top
×
Log in
If you created your account with Google or Facebook
Don't have an account?
Forgot your password?
No Problem

Simply enter the email address you used to create your account and click "Reset Password". You will receive additional instructions via email.

Forgot your username? If so please contact customer support at (510) 658-9252

Password Reset Confirmation

Password Reset Instructions have been sent to

Subscribe to The Weekender
Get the week's leading headlines delivered straight to your inbox.
Top headlines from around the real estate industry. Breaking news as it happens.
15 stories covering tech, special reports, video and opinion.
Unique features from hacker profiles to portal watch and video interviews.
Unique features from hacker profiles to portal watch and video interviews.
It looks like you’re already a Select Member!
To subscribe to exclusive newsletters, visit your email preferences in the account settings.
Up-to-the-minute news and interviews in your inbox, ticket discounts for Inman events and more
1-Step CheckoutPay with a credit card
By continuing, you agree to Inman’s Terms of Use and Privacy Policy.

You will be charged . Your subscription will automatically renew for on . For more details on our payment terms and how to cancel, click here.

Interested in a group subscription?
Finish setting up your subscription
×