Since Millennials are characteristically delaying what is considered by older generations life “goals,” we sought out to ask them which they were most likely to postpone: having children, homeownership, investing in a 401k, finishing their degree or getting married.

Note: The Millennial Age Range is a tad ambiguous, but generally refers to those born in 1982 to 1997, depending on which source you use. Obviously those who are 33 years old will have different life goals than those who are 18 years old, so we compared the 18 – 24 year, and the 25 – 34 year age range to see if there were big differences.

Millennials Remain Childless Longer

The most commonly delayed life milestone was having children, with almost 30% of respondents. Studies correspond with these responses as well, as they have shown that women are waiting much longer to have children. In 1970, the average age of a first-time mother in the U.S. was 21; as of 2013, it is 26. Investing in a 401k was the next most likely to be put off at nearly 21%, and finishing a degree garnered nearly 19% of responses. Perhaps unsurprisingly, a far higher percentage of men (32.6%) compared to women (26.8%) responded that they were likely to put off having children.

Salary Affects 401k’s

We were quite surprised to find that those making between $100,000-149,000 responded they were most likely to put off setting up a 401k, at a 33% rate. In direct relation to this, those in the 25 – 34 age bracket responded they were most likely to put this off at a higher rate than the 18 – 24 age bracket. Both results went against what common sense tells us, in that those who are older and/or making more money should be more able to contribute to a 401k.

However, one study says that 45% of working age households have no retirement assets of any kind. This could be attributable to many things; an increase in wanderlust among those 34 and younger, low salary (those making less than $25,000 responded they were most likely to put this off at a 28.7% rate), or living expenses causing an inability to save properly.

Life Goals Compared by Gender

As previously noted, men are far more likely to postpone having a child than women. But what about the rest of the options? At 22.4% and 14.9% respectively, women were far more likely to put off finishing their degree than men. This is interesting to note, as a recent study shows that women aged 25 – 34 are more likely than men to have graduated college. Perhaps the responses to this option in our survey were from those not currently enrolled in school, as it appears that women actually enrolled finish at a 21% higher rate than men, again according to the study.

Methodology

The Choice Home Warranty survey asked respondents aged 18 – 34 “What are you most likely to postpone in your life?” using the Google Consumer Surveys tool. The survey ran in July 2015 and gathered 1,034 responses. Results are weighted by inferred gender and region to reflect the population.

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For Millennials especially, growing up during the housing crisis and recession have shaped their outlook on the future of homeownership. While there have been many reports on the decline of Millennials owning property, we sought out ask them when exactly they see themselves buying their first home.

Note: The Millennial age range includes 18-34 years of age, so while these are still young homeowners, an 18 year old will typically have different homeownership aspirations compared to a 34 year old. In certain instances of our survey breakdown, we compared the two groups (18-24 vs. 25-34) to see if there were dramatic differences in their homeownership goals.

Millennials Want to Buy Sooner Than We Think

For Millennials seeking a home, 30% plan to purchase one within the next 5 years—a high level of confidence given the reports that Millennial homeownership is down. The next time frame, 6-10 years, showed the biggest discrepancy within the age group. 25% of 18-24 year olds said they would buy a home within this time frame, but only 10% of 25-34 year olds said the same. This could show that 25-34 year olds aren’t planning for homeownership long term if they are still renting.

As a whole, 17% of Millennials said they never plan on buying a home—showing that economic factors have impacted a small set of Millennials to remain lifelong renters.

Gender Impacts Homeownership Goals

It seems that owning a home sounds much more unappealing to men than women. Overall, only 15% of Millennial women said they plan on never buying a home, whereas 19% of males gave that response. When looking at the Millennial age range most likely to own a home (25-34), 41% of women were already homeowners, compared to only 36% of men in the same age range.

Finally, women continue to be more likely to plan for homeownership in the future, with almost twice as many Millennial women planning to buy a home within the next 6-10 years compared to men.

Effects of Salary

There were some notable differences in household income, primarily those who are planning on buying a home within the next five years. Close to 40% of Millennials making less than $24,000 a year said they plan on buying a home in the next five years. Additionally, only 25% of those making between $50-74,000 said they have the same plans.

Given these same salary parameters however, only 14% of those making less than $24,000 said they already own a home, while close to 33% of those making $50-74,000 said they already own one—showing that while Millennials are aspirational, their homeownership goals don’t always come to fruition.

Methodology

The Choice Home Warranty survey asked respondents aged 18-34 “When do you plan to buy your first home?” using the Google Consumer Surveys tool. The survey ran in January 2015 and gathered 1,002 responses. Results are weighted by inferred gender and region to reflect the population.

The post When do Millennials Plan to Buy Their First Home? appeared first on Choice Home Warranty.

How They Guessed

We asked Oregon residents aged 25 – 34 what they thought the cost of repairs per year would be on a $267,000 valued home. Using the 1% estimate, the correct answer would be $2,670. Surprisingly, Oregonians underestimated by 23% – reporting instead an average cost of $2,113. Underestimating the annual expenses by more than $500 could be attributed to the low cost of regular repairs in the state. Here is a list of common maintenance costs nationally versus Oregon:

• Appliance Repair: National $218, Oregon $181
• Window Installation: National $5,612, Oregon $4,682
• Roof Repair: National $1,065, Oregon $824
• Water Heater Installation: National $1,025, Oregon $827

Because Oregon repairs tend to cost less than the national average, that may account for the propensity to guess a lower annual repair budget.

Income A Factor In Miscalculating Home Repairs

Of all the residents who responded, 57% guessed repair costs under $2,000 (with the majority guessing $1,000 or less). Income played the greatest role in this result, with the majority of the low responses coming from individuals earning between $25,000 – $75,000. Since the home value of $267,000 asked in the survey is based on the current median listing price in Oregon, it’s surprising that middle class participants are most likely to miscalculate the number. On the contrary, low income and high income households anticipated annual costs to be higher, stating $2,859 and $2,835 respectively.

Home Warranty: Relief from Guessing

While annual repairs can run a homeowner into the thousands annually, a home warranty service contract could lower the costs. The average price of a warranty is $450 per year – significantly lower than the average expected maintenance costs in Oregon. Though home warranty service contracts do not include regular maintenance like cleanings and inspections – and excludes larger items such as roofs and septic systems – they do include important repairs on well maintained appliances, which could save homeowners thousands in replacement and installation costs.

Methodology

The Choice Home Warranty survey asked respondents aged 25-34 in Oregon “On an average-aged $267,000 valued home that you own, how much would you expect to pay in home maintenance costs per year?” using the Google Consumer Surveys tool. The survey ran in October 2014 and gathered 999 responses. Results are weighted by inferred gender, age, and geography to reflect the population.

The post Oregonians Underestimate Home Repairs by $500+ Annually appeared first on Choice Home Warranty.

But how much exactly is this annual maintenance cost? Experts say that it’s 1% of your home’s value. That means if you own a home worth $250,000, you’re likely to spend about $2,500 in maintenance and repairs each year. Is this more — or less — than what you’d expect to pay?

Home Maintenance Costs: Expectation vs. Reality

We asked Texans between 25 and 34 years old what they would expect to pay in home maintenance costs per year for a home with a value of $134,200. On average, the cost to maintain this home would be $1,342 per year, or, 1% of its value. But surprisingly, Texans overestimated the cost by more than $500, with an average answer of $1,851.82. That means Texas are overestimating home maintenance costs by 37%!

This is good news for Texans: properly maintaining your home may cost less than you think. That means there’s no excuse for staying on top of basic upkeep of your home, including air conditioning and furnace inspections, tree trimming, gutter cleanings, and roof inspections and repairs.

In fact, common home maintenance tasks in Texas are often lower than the national average:

• • Chimney Cleaning: National $384, Texas $232
  • Tree Trimming or Removal: National $931, Texas $697
  • Roof Inspection: National $490, Texas $231
  • Roof Repair: National $1,043, Texas $883

Higher Cost Estimates for Urban and Lower Income Home Owners

Our survey shows that among people in urban areas, those earning $0-24K answered higher on the scale than those earning $50-74K. People earning $0-24K expected to spend $2,661 on home maintenance per year, while those earning $50-74K expected an average of $1,981. Interestingly, both urban groups expected to pay more per year in maintenance costs.

This higher cost estimate for lower income home owners is common even outside of urban areas, with people earning $0-24K answering higher on the scale than those earning $25-49K. Earners of $0-24K expected a cost of $2,233, while those earning $25-$49K expected $1,634.

In reality, home owners with a lower income may truly pay more for home maintenance costs. Why? Low income home owners on a tight budget may put off important maintenance and repairs more often than those with a higher income and a greater ability to stay on top of home maintenance. That means issues like roof leaks, air conditioning repairs, or deteriorating exteriors left unaddressed may grow to become bigger, more expensive problems instead of being taken care of on time and at a lower cost.

Home Maintenance and Repairs May Be Less with a Home Warranty Service Contract

While the cost to maintain a $134,200 home may be $1,342, with a home warranty service contract, it could be even less. The average price of a warranty is $450 per year — significantly lower than the average maintenance cost and much lower than the $1,851.82 that most homeowners in Texas expect to pay each year.

Though home warranty service contracts do not include regular maintenance like HVAC cleaning, roof inspections, or tree trimming, they do include important repairs on well maintained systems and appliances, including air conditioning, plumbing, hot water heaters, and kitchen appliances.

Methodology

The Choice Home Warranty survey asked respondents aged 25-34 in Texas “On an average-aged $134,200 valued home that you own, how much would you expect to pay in home maintenance costs per year?” using the Google Consumer Surveys tool. The survey ran in October 2014. Results are weighted by inferred gender, age and geography to reflect the population.

The post Texans Overestimate Home Maintenance Costs by 37% appeared first on Choice Home Warranty.

One of the considerations potential homeowners must make is the cost of maintaining their home. When renting, the owner of the building or condo would take on the costs of broken appliances, stained carpets or other damage. But when the building becomes yours, the responsibility shifts, and any and all unforeseen costs must be covered by the homeowner.

Mis-Budgeting Home Maintenance Costs

In a study performed in December 2013, Choice Home Warranty asked 2000 24-35 year olds, a large first-time home buying audience, how much they would expect to pay in home maintenance costs on an average home. The respondents, surprisingly, underestimated the average cost by more than 27%.

Choice asked young adults how much they would expect to pay in home maintenance costs per year on an $300,000 home of average age. They responded with a mean number of $2191.1, over 40% lower than the expected minimum $3000 home maintenance cost experts suggest accounting for when buying a home of this price.

The True Cost of Home Maintenance

Home maintenance experts suggest homeowners plan for home repairs from one to four percent of the home cost per year. For the house suggested to our study group, that number would be $3000 to $12000 in costs annually, a price that would likely only go up as the home aged.

The differential shows that most first-time home buyers will go into the real estate transaction not truly understanding the future costs of their home. Many will see the cost of the mortgage as their only large cost, without properly budgeting for unforeseen events that come from appliances breaking or the home getting damaged unexpectedly.

Women appear to be better prognosticators of actual home maintenance costs, as they estimated the average expenses per year to be $2290, $204 higher than the average reported by males, $2086.

Salary also seemed to have an impact on responses, with 1115 respondents in the $25,000-$49,999 wage bracket expecting a $2128 average cost, compared to $X for other salary ranges. 150 responders in the $0-24,999 bracket expected a $2275 yearly expense, but their representation in the group as a whole is not statistically significant.

This study shows that many prospective homeowners may be putting themselves in line for financial troubles in the future, if they purchase a home while incorrectly assuming the actual costs of ownership. Those that do proper research and a buy a home that sits realistically within their budget will likely avoid the stresses that come with budgeting issues.

Methodology

The Choice Home Warranty survey asked respondents aged 25-34 “On an average-aged $300,000 home that you own, how much would you expect to pay in home maintenance costs per year?” using the Google Consumer Surveys tool. The survey ran December 3rd to December 6th, 2013. Results are weighted by inferred gender, age and geography to reflect the population.

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A recent survey by Choice Home Warranty found that 67.5% of Americans don’t trust real estate agents. Age was the biggest indicator of whether a respondent was likely to express trust; nearly 70% of people under the age of 44 said they do not trust agents.

When it comes to surveying who trusts real estate agents, the responses across demographics remains pretty static.

Both men and women appear to have the same level of distrust, answering No 69% and 66% respectively. The responses were only separated by 3%, which is within the margin of error.

Likewise, regional responses showed little variation from the national average. The Midwest had the highest level of trust with 38.1% of participants answering Yes; the West had the lowest level of trust with only 28.5% saying the same. Again, though, these responses are close to the margin of error.

However, population density did have a slight influence on whether participants were likely to trust real estate agents. 66% of city dwellers, those defined as living in Urban or Suburban areas, said they did not trust agents. Distrust jumps to 74.3% for those living in Rural areas.

Age was the most positive indicator of trust level for those surveyed.  Respondents ages 55-64 were most likely to trust real agents, answering Yes 42.2% of the time. Trust drops to just 27.7% for respondents ages 35-44. There is a slight bump to 30.2% for those in the 25-34 age group.

Methodology

The Choice Home Warranty Survey, “Do You Trust Real Estate Agents,” was conducted online using Google Consumer Surveys October 30, 2013 among 1147 adults (aged 18 and over). Results are weighted by inferred gender, age and geography to reflect the population.

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