Beyond the Bricks
The meaning of home
Seventy-six percent of people who
do not own their own home expect to
do so in the next fve years.
Beyond the Bricks is HSBC’s
new international study on home
ownership, providing insights into how
people really feel and behave when
buying, renting and owning their own
home.
This factsheet represents the views
of more than 9,000 people in nine
countries and provides a snapshot of
some of the key research fndings
about millennials’ home ownership
prospects, the changing role of the
home, and the pitfalls of budgeting,
around the world.
There are also some practical tips
to help people make their home
ownership dream a reality.
Millennials and home ownership
Is the dream dead
Millennials’ home ownership
ambitions are alive and kicking, but
growing affordability challenges look
set to defer the dreams of many.
Two in fve (40%) millennials around
the world own their own home.
However, there is signifcant variation
between countries.
Among millennials who don’t own,
more than four in fve (83%) intend to
buy a home in the next fve years.
But with 64% of millennials who
don’t own a home needing a higher
salary before they can buy, the
combination of slow salary growth
and rising property prices makes it
unlikely that all will be able to achieve
their goal.
Seven of the nine countries below
are projected to experience real
wage growth of less than two
percent in 20171.
Eight of the nine have seen property
price rises in 20162.
AverageChina3 MexicoFranceMalaysia USA Canada UKAustralia UAE
Millennial
home owners40%70%46%41%35%35%34%31%28%26%
Millennial non-
owners intending
to buy in next
5 years
83%91%94%69%94%80%82%74%83%80%
Q. Thinking about the main home you live in, which of the following best describe (a) your current situation (b) your expected situation in fve years from now
(Base: Millennials)
1 Korn Ferry Hay Group: 2017 Salary Forecast
2 International Monetary Fund: Global House Price Index October 2016 (2016: Q2 or latest, annual percent change)
3 The China survey sample includes 85% urban, 14% suburban and 1% rural respondents
Millennial home ownership
Global factsheet
Millennials also do not have their
house in order when it comes
to fnancial planning for their
home purchase.
Of millennial non-owners intending
to buy a home in the next two
years, nearly one in three (31%)
have no overall budget in mind and
a further 54% have only set an
approximate budget.
Those in Mexico are the most likely
to have set no overall budget (43%)
and those in France the least
likely (18%).
The affordability challenge is
highlighted by the fact that 69% of
millennials intending to buy have not
yet saved enough for a deposit.
In Malaysia, this fgure rises to
more than three quarters (77%)
of millennials. This is lowest in
the UAE at 45%.
In addition, 34% are being held back
because they cannot afford to buy the
type of property that they would like.
Barriers to millennial home ownership
Budget setting among millennials intending to buy
Q. Which of these need to happen before you are able to go ahead with buying a home
(Base: Millennial non-owners who intend to buy)
Q. Have you set an overall budget for your home purchase
(Base: Millennial non-owners who intend to buy in next 2 years)
Budget blindness
Overspending
So it is not surprising that 56% of
millennials who bought a home
in the last two years ended up
overspending their budget.
This overspend was most common
in the UAE and Malaysia (70% and
68%) and least common in France
and Canada (41% and 42%).
Millennials who overspent on their home purchase
Q. Was the total cost of buying your home higher or lower than you budgeted/expected
(Base: Millennials who bought a home in last 2 years)
31%
No budget
54%
Approximate budget
15%
Precise budget
64%
Having a higher
salary
Saving enough
money for a deposit
69%
AverageLowest
UK
UAE
45%
54%
Malaysia
Malaysia,
USA
71%
77%
Highest
UAE
70%
Malaysia
68%
AverageAverage
56%
Canada
42%
France
41%
2 | Beyond the Bricks The meaning of home
The Bank of Mum and Dad
Financial support from parents can
make all the difference when saving
for a home. Thirty-six percent of
millennial home owners have used
the ‘Bank of Mum and Dad’ as a
source of funding. This was most
common in the UAE (50%) and least
common in France (26%).
Additionally, one in fve (20%)
millennial home owners moved back
in with their parents to save for a
deposit. This was most prevalent in
the USA (28%), compared to only six
percent in the UAE.
On the other hand, many millennials are
willing to consider making sacrifces to
afford their own home.
More than half (55%) of millennials
intending to buy would consider
spending less on leisure and going
out, 33% would be prepared to buy
a smaller than ideal place and 21%
would consider renting out one of
their rooms. Eighteen percent would
consider buying with a family member
and 11% with friends. More than one
in fve (21%) would even be prepared
to delay having children.
Making sacrifces
Q. Which of these would you consider to help you own a home (Base: Millennial non-owners who intend to buy)
Sacrifces millennials would consider to own a home
AverageUAE MexicoChina Canada UKUSAAustralia Malaysia France
Millennial home
owners whose
parents helped
them to buy
36%50%41%40%37%35%32%30%29%26%
Millennial home
owners who
moved back
home with
parents to save
for a deposit
20%6%21%20%21%27%28%25%23%14%
Parental support for millennial home owners
Withdrew from
savings55%
Cut back on
spending43%
Took out a bigger or
new mortgage/ loan25%
Borrowed money
from family26%
Borrowed money
from friends13%
Q. What actions did you take to manage the unexpected costs
(Base: Millennials who bought their home in the last 2 years and experienced unexpected costs)
How millennial home owners managed unexpected costsThe Bank of Mum and Dad is in
demand again when millennials who
recently bought a home found they
had exceeded their budget.
More than a quarter (26%) borrowed
from their family to manage the
unexpected costs.
Spend less on leisure
e.g. going out/ eating
out to save money
Buy a smaller
place than I would
ideally like
Buy with a family
member (excluding
your partner/spouse)
Move in with
a relative to save
for a deposit
Buy with friends
55%33%
18%17%11%
Rent out one of your
rooms to help pay the
mortgage/loan/bills
21%
Delay having
(more) children
21%
Buy somewhere
that is not my
preferred location
18%
Q. Which sources of fnance have you used to buy a home (Base: Millennial home owners)
3 | Beyond the Bricks The meaning of home
4 | Beyond the Bricks The meaning of home
Too little too late
Millennials are not the only generation
to fnd the full cost of buying a home
higher than they expected.
Thirty-one percent of all non-owners
intending to buy in the next two years
have set no overall budget. Fifty-three
percent have an approximate budget
in mind, and only 16% have set a
precise one.
Ironically, the least fnancially prepared
to buy in the next two years are those
who are currently living rent-free (e.g.
with parents), with more than two in
fve (41%) having no budget in mind.
It should come as no surprise
therefore that more than half (53%) of
recent home owners found the total
cost of buying a home w