Buying a home is tough as a millennial, but apparently not as hard if you’re from China. This is according to an HSBC study looking at global buying behaviour of millennials. The survey looked at nine countries, and found that rates were within a few points across the globe – except in China.
40% of Millennials Own Their Own Home
The rate of global millennial homeownership is 40%, a little higher than I expected. Leading the pack are Chinese millennials, where 70% owned their home. That’s not a huge surprise since the country’s national average of homeownership is a whopping 90%. The US and Canada was somewhere in the middle, with 35% and 34% respectively. The UAE had the lowest rate of ownership, coming in at just 26%. Millennials in China are almost twice as likely to own a home than the average millennial in the other eight countries.
Majority of Millennials Overspent On Their House
Millennial first-time buyers have the tendency to overspend, and it’s a global trend. Over the past 2 years, 56% of global buyers surveyed said they went over budget. A massive 70% of UAE buyers went over their budget, followed by 68% of Malaysian buyers. Canada and France were the least likely of the group, with 42% and 41% of buyers over budget respectively. Only 15% of survey respondents had a precise budget, so it’s easy to see why so many went over the “budget.” Hard to stay within a number if you don’t know what that number is.
Tapping The Bank of Mom and Dad
Another global buying trend for millennials is tapping the bank of mom & dad. 36% of buyers had support from their parents. This number was highest in the UAE, where 50% had parental help. China was a little higher than Canada at 40% and 37% respectively. French millennials were least likely to get parental support, with only 26% receiving help.
The results of the survey show that homeownership amongst millennials faces similar barriers across many countries (except in China). Having parental help to buy a home is increasingly becoming a requirement. Now the big questions are, is global asset inflation pushing prices too high, are millennials facing a lack of economic opportunity, or is homeownership not a priority for this generation?
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