In HSBC’s Generation Buy study, 35 percent of American millennials own their homes. Those who are not homeowners yet but are planning to buy a house in the next five years are at 80 percent.
The study examined nine countries in different continents, including China, the United Kingdom, and the United States. Among these countries, China had the most number of millennial homeowners at 70 percent.
The biggest hurdle these individuals have would be housing affordability. HSBC cited slow salary growth and inflation of house prices as serious challenges millennials are facing.
There were more than 9000 respondents. 40 percent of them already have homes. 83 percent of those who do not have a house yet are planning to buy within the next five years. Over 60 percent of this generation who are non-owners said that they needed a higher income to be able to afford a house.
In the US, Unemployment Continues to Fall
While in the United States, the unemployment rate has continuously gone down. From 4.8 percent at the beginning of the year, It has gone down to 4.3 percent in May. The number has decreased by 774,000. This data was released by Trading Economics.
Bank Identifies ‘Actions’ to Help Millennials in Homeownership
HSBC also conducted a research to help find effective ways which will initiate the home buying journey.
- Early planning and carefully considering the down payment.
- Setting an allowance on the budget, based on the purchase price.
- Cutting back on some of your spendings.
- Examining your financial situation thoroughly
Lessen Your Spendings, Millionaire Says
In an interview on 60 Minutes in Australia, millionaire and property tycoon Tim Gurner said, “When I was trying to buy my first home, I wasn’t buying a smashed avocado for $19 and four coffees at $4 each.”
While it will take 49,000 avocado toasts to be able to save up for a median-priced home’s down payment, what he actually meant was being wise about your spendings.