- Millennials are less likely to own homes than previous generations due to high college debt, difficult economic conditions, and a preference to rent. While most Millennial renters and homeowners are satisfied with their current housing arrangements, nearly 70% of renters plan to purchase a home. - Housing is considered affordable for the majority of Millennial renters and homeowners based on their reported monthly costs. However, renters are more likely to have lower monthly costs and incomes. - The top reasons for both renting and owning are affordability and location preferences. Millennials also value flexibility when renting but financial security when owning. Most Millennials plan to self-fund down payments without family assistance.

1. A CLOSER LOOK AT:
MILLENNIALS & HOUSING

2. CONFIDENTIAL 2
A CLOSER LOOK AT: MILLENNIALS & HOUSING
A CLOSER LOOK AT: MILLENNIALS & HOUSING is part of Lab42’s research series exploring current social and business
issues, helping marketers uncover important consumer insights, build foundational understanding, and refine their
strategies.
According to the National Association of Realtors pending home sales have declined 7 of the last 12 months. A USA
Today analysis (see ‘Housing recovery leaves Millennials behind’, July 18, 2013) of Census Bureau data indicates that those
between 25-34 years old experienced the largest decline in homeownership. Recent news reports have hinted at several
reasons for this - from watching older siblings’ challenging home ownership experiences, to crushing college debt, to a
rent-it lifestyle.
After a thorough review of existing research and literature, Lab42 identified a need to better gauge and understand
current housing trends and attitudes for Millennials.
This topline report specifically addresses the following:
• Millennials’ Satisfaction with their Current Arrangements
• Housing Affordability for Millennials
• Millennials’ Reasons to Rent vs. Own
• Economically Self-Reliant Millennials
RESEARCH METHODOLOGY
This survey was conducted among 500 American adult Millennials between the ages 18 and 34 from March 28-30, 2014.
Initially, survey participants were asked about their current housing arrangements, including owning (44%), renting (39%),
rent-free arrangements (14%), and institutional residential housing, including college dormitories (3%). The survey then
probed the economic decisions, attitudes, and levels of satisfaction with housing options. Data was analyzed by
gender identity, age, relationship status, and type of housing.
MILLENNIALS SATISFACTION WITH CURRENT LIVING ARRANGEMENTS
For Millennial homeowners, all three study group segments (gender, age, relationship status) reported similar levels of
satisfaction with home ownership. Ninety-five percent of women and 96% of men are satisfied with their decision to own.
What’s more, homeowners are also highly satisfied with their mortgage companies: 96% report being satisfied, with 48%
being very satisfied.
Despite renters’ current satisfaction, nearly 70% plan
to purchase a home at some point, with 44% saying
they plan to do so before 2018. Younger Millennials
(ages 18-24) are more than twice as likely to be among
the 25% who plan to buy in 2018 or later compared to
those ages 25-34.
Though not as high as homeowners, renters were also
primarily satisfied with their decision to rent. Again
across the sub-sample groups, the responses were
similar when it comes to satisfaction with renting. For
example, of Married/Civil Union couples, 77% are
satisfied with their decision to rent, compared to 83%
of those not married.
SATISFACTION WITH CURRENT LIVING ARRANGEMENTS
AMONG OWNERS, RENTERS, THOSE LIVING FOR
FREE/DON’T PAY RENT
OWNERS RENTERS LIVING
FOR FREE
95% 82% 72%

3. CONFIDENTIAL 3
A CLOSER LOOK AT: MILLENNIALS & HOUSING
A measurable group of Millennials are neither home owners nor paying renters. These are individuals who live in another
person’s home and do not pay traditional rent. Examples include living with parents or living with friends. With smaller
numbers of “no-cash renters”, the results may be more directional than definitive. Both men and women report similar
levels of satisfaction, with 71% of men and 73% of women satisfied with their decision to live in a rent-free space. This was
the lowest of the three housing options, but still a
relatively high level of satisfaction.
HOUSING AFFORDABILITY FOR MILLENNIALS
Housing affordability discussions have primarily focused on below-median income brackets. We wanted to understand
how much Millennials spend on housing and how they assess the affordability of their housing choice.
Overall, Millennials reported a high level of comfort with their current housing expenditures. When directly asked about
monthly payment affordability, 94% of owners reported that their monthly payments are affordable, and nearly 84% of
renters said their monthly payments are affordable.
A significantly higher percentage of renters reported total undivided monthly housing cost (in this case rent) below $499,
with 28% reporting this range compared to 10.4% of home owners reporting similar monthly mortgage expense. In
addition, nearly 40% of Millennial renters say they split March 2014’s rent with someone else, compared to only 24% of
owners who reported splitting their
mortgage payment. It should be noted
that renters in general, reported lower
2013 household income than homeowners,
especially in the $5,000 and $24,999 annual
income range.
When reviewed by gender identity, a higher
percentage of men (93%) reported that their
rent/mortgage payment is affordable than
women (84%).
MILLENNIALS’ REASONS TO RENT VS. OWN
Another area of interest is the reported reasons for deciding to rent or own housing. This was of high interest to our own
research team, two of whom currently rent and one who owns a permanent home and co-owns a family farm.
To provide comparability, both Millennial renters and owners were provided very similar lists, with minor changes for
context and specific situation (e.g. renters: saving up for a home; owners: saving up for a second home). Both were given
the opportunity to select their top three reasons for their housing choice.
Surprisingly, two of the top three reasons are the same for both segments.
TOP THREE REASONS TO OWN
AMONG ALL OWNERS
“Lets me live in an
area I want to live”
“Is more affordable”
“Makes more
financial sense”
1
2
3
TOP THREE REASONS TO RENT
AMONG ALL RENTERS
“Is more affordable”
“Gives me flexibility
in where I can live”
“Lets me live in an
area I want to live”
1
2
3
MILLENNIALS OVERALL RENTERS VS. OWNERS MEN VS. WOMEN
89% 94%
84%
93%
84%
LEVEL OF AFFORDABILITY

4. CONFIDENTIAL 4
A CLOSER LOOK AT: MILLENNIALS & HOUSING
About 52% of the Millennial renters and 38% of the owners cited “Is more affordable”, making it the most cited reason for
renters and the second most cited by owners. This held similar for all studied demographic segments for both renters and
owners.
Also in the Top Three is “Lets me live in an area I wanted to live in/location”, first on the list for owners with slightly over
42% indicating this reason and third for renters at 34%.
Rounding out the Top Three reasons for Millennial owners is “Makes more financial sense” with about 35% including this
as a reason to own, with a noticeably higher percentage of women than men choosing this reason (42% of women vs.
26% of men). For renters, “Gives me flexibility in where I can live” was second most common reasons for renting with 39%
selecting this option.
One interesting finding outside of the Top Three – more women (35%) said renting allowed them to save up for a down
payment on a home, compared to only 20% of men. Women were also more likely to say they rent because they didn’t
think they would qualify for a mortgage (28% vs. 13%), whereas men were more than twice as likely to rent so they can
invest their money elsewhere (17% vs. 7%).
ECONOMICALLY SELF-RELIANT MILLENNIALS
Millennials demonstrate genuine self-reliance when buying or preparing to buy a home. We asked specifically about
saving for down payments. Of those planning to purchase a home, 93% plan to save the money for a down payment
themselves and not rely on family members for help. Among
those who own and have already made down payments, the
actual results are similar: 87% said they saved the money for
their down payment themselves, and among the 13% who
received assistance from their family, 71% received less than
25% of the down payment from others.
Down payments among Millennials vary greatly. The largest
group of Millennial homeowners (32%) put 11%-20% down,
while 27% paid 1%-10%. Twenty percent reported paying 21%-
30%, while another 12% said they put 0% down. The
remaining 9% of Millennial homeowners put more than 30%
down.
SAMPLE CHARACTERISTICS
For this topline report, 500 adults were surveyed online using Lab42’s proprietary survey sampling system. To assist with
analysis, a quota was set by age with 50% in the 18-24 year old segment and 50% from the 25-34 year old segment.
Other demographic characteristics monitored were: living arrangements, 2013 household income, employment status,
U.S. Census division, gender identity, primary ethnicity/racial identity, education attainment, urban environment, and
number of own or stepchildren in the household. Relationship status was also asked with analysis conducted between
those who are married or in a civil union versus other standard relationship groups.
Please see page 4 for a complete breakdown of demographic data.
ABOUT LAB 42
Lab42 is a quantitative market research firm that helps businesses accomplish and prioritize their goals through targeted
social media-based research. By providing fast and affordable insights and customized infographics, Lab42 makes market
research more accessible for companies of all sizes, ranging from small businesses to Fortune 500 companies. For more
information, visit www.lab42.com or email us at info@lab42.com.
DOWN PAYMENT AMOUNTS
AMONG MILLENNIAL HOMEOWNERS
0% DOWN
1%-10% DOWN
11%-20% DOWN
21%-30% DOWN
> 30% DOWN
12%
27%
32%
20%
9%

5. CONFIDENTIAL 5
A CLOSER LOOK AT MILLENNIALS & HOUSING: RESPONDENT DEMOGRAPHICS
GENDER
41%
59%
MALE
FEMALE
AGE
50%
25-34
50%
18-24
Full-time Student Part-time Homemaker Unemployed Self-
Employed
Disabled
EMPLOYMENT STATUS
42%
21%
12% 11% 10%
2% 2%
HIGHEST EDUCATION COMPLETED
Some High
School
High School Some
College
2-year
Degree
4-year
Degree
Master’s Doctoral Professional
4%
23% 27%
14% 25%
5% 1% 1%
9% 12%
28% 24%
12% 7% 8%
<$10K $10K–
24.9K
$25K–
49.9K
$50K–
74.9K
$75K–
100K
$100K+ DID NOT
DISCLOSE
2013 HOUSEHOLD INCOME
Caucasian
Hispanic
African-American/Black
Asian/Pacific Islander
Southeast Asian
Native-American
Other
Prefer not to Disclose
66%
11%
9%
8%
3%
1%
1%
1%
ETHINICITY
45%
31%
11%
10%
3%
<1%
RELATIONSHIP STATUS
Single
Married
Living w/SO
Dating
Engaged
Divorced
LOCATION
Downtown of a Central City
Neighborhood of a Central City
Suburb
Rural or Small Town
7%
29%
40%
25%
NUMBER OF CHILDREN
61% 19% 14%
4% 2%
None
or
More