Real Estate News

Survey compares millennial home buyers around the world

Published: 20 Apr 2017

The contrast between the U.S. and its international neighbors has led to debate over the future of the global economy. An HSBC survey recently looked at the explicit differences between millennials around the world that could conceivably buy a home soon.

As part of the larger "Beyond the Bricks" report, the source ranked the percentage of both the millennials who currently own a home and those who intend to over the next five years.This survey found that China had a disproportionate lead in both categories, with 70 percent of millennials owning homes and 91 percent preparing to in the near future. This put it in the top spot for the former but only at third place for the latter, behind Malaysia and Mexico, which each had 94 percent of millennials claiming they would buy a home within just five years from now.

While the U.S. didn't have the lowest amount in either category, only 35 percent of its millennials were already owners and just 80 intending to purchase. It's also worth noting that China had a 4 percent projected salary growth for this year, compared to the 1.9 percent figure of the U.S. This came from Korn Ferry Hay Group 2017 Salary Forecast data.

In a related press release, HSBC Global Head of Retail Banking Louisa Cheng argued against the stereotype that millennials don't have capital.

"This study challenges the myth that the home ownership dream is dead for millennials around the world," she said. "With four in ten already owning their home, the dream of home ownership for millennials is definitely alive and kicking."

A Forbes article from March looked closer at the power of Chinese consumers, which might affect their status as potential future homeowners as well as buyers in general. Contributor Helen Wang argued that the One Child policy has left a generation of community-focused adults interested in luxury, shopping and socializing. All of this could encourage the populace to keep searching for possible homes, and might signify a larger shift if the trends continue.