AMELIA, Ohio, Feb. 1, 2016 /PRNewswire/ -- The majority of millennials (81 percent) view home ownership as an important part of achieving the 'American Dream,' according to a study commissioned by American Modern Insurance Group®, a leading specialty residential insurer. The study, conducted by ORC International, Inc., polled residents of the greater San Francisco area to gauge sentiment around buying a home versus renting.
Of the 1,000 respondents surveyed, millennials (ages 18-34) were most likely to consider owning a home as part of achieving the 'American Dream.' In contrast, only 68 percent of respondents belonging to Generation X (ages 35-50) believe this to be true, compared to 72 percent of those 65 years and older.
"Although the younger generation of potential homeowners may be delaying this decision for personal or financial reasons, this survey shows that today's young Americans, specifically those in the dynamic San Francisco real estate market, still place tremendous value on the importance of homeownership," said Michelle Mayhall, Marketing Analysis Team Supervisor at American Modern. "In fact, our survey findings show that the idea of owning a home as part of the 'American Dream' is not only important to millennials, but is in fact even more pronounced than among their more senior counterparts."
Nine in ten millennial respondents (89 percent) stated that they plan on owning a home someday, but many have faced financial hurdles and other setbacks that prevent them from achieving this goal. More than half (58 percent) of millennial respondents cited financial barriers such as not being able to afford a down payment or the inability to afford monthly expenses (mortgage and taxes, for example) as the primary obstacles to owning a home. Among all residents polled who currently or have previously owned a home, 51 percent say that they made this financial commitment because owning a home is a better investment than renting, while 26 percent say it provides a more stable environment.
These findings reinforce that millennials, in particular, are concerned with the financial aspects associated with buying a home versus renting. To further this point, the study found that among respondents who have rented in the past, millennials were the most likely to have had renters insurance (55 percent), the highest of any age demographic examined.
"Millennials have become savvy renters in part due to the financial challenges they face buying a home in today's economic environment," said Mayhall. "Our goal at American Modern is to provide specialty insurance solutions that help safeguard our customers' assets and support them on their journey to achieving their financial goals."
The study was conducted by ORC International's CARAVAN® Omnibus services and was based on online responses of 1,000 U.S. adults in the greater San Francisco area conducted in Q4 2015. There is a margin of error of +/- 3% at a 95% confidence level. This margin of error would be greater for any subsets of the sample.
About American Modern Insurance Group
American Modern is a widely recognized specialty insurance leader that delivers products and services for residential property--like manufactured homes and specialty dwellings--and for consumers in the recreational market, including owners of boats, personal watercraft, classic cars, motorcycles, ATVs and snowmobiles. The company also provides products and services to protect financial institutions and their customers.
American Modern is licensed in all 50 states through six property and casualty companies, which are part of an insurance group that enjoys an A+ (superior) rating by the A.M. Best Company, a leading independent insurance analyst. These companies insure more than 1.7 million policyholders countrywide and have been recognized as a Best Place to Work by the Cincinnati Business Courier and a Top Workplace by the Cincinnati Enquirer.
Policies are written by one of the licensed insurers of American Modern Insurance Group, Inc., including American Modern Home Insurance company d/b/a in CA American Modern Insurance Company (Lic.No 2222-8).
SOURCE American Modern Insurance Group