A new survey conducted by HSBC showed that 70 percent of Chinese millenials own homes. The survey sample encompassed 9,000 individuals all born any year from 1981 to 1998. The survey was spread over a total of nine countries. It found that Chinese millenials clock almost double the international average when it comes to owning home properties. Mexico comes in second position, with 46 percent of the millenial respondents having their own residences. In contrast, home ownership among American millenials stand at only 35 percent.
It is clear that the Chinese young person is more interested in purchasing real estate, young Chinese renters want to own their own homes compared to their American counterparts. About 90 percent of Chinese millenials have a plan to buy their own home within the next 10 years. This is 11 percent more compared to the US millenial renters.
This is a paradox. Chinese properties are incredibly expensive. The country is home to seven of 10 highest priced residential real estate properties in the world- then how is it that a young Chinese individual can afford to buy properties, but an American youngster cannot?
The truth is that in China, buying a home is much more than a place to spend days in. China suffers a gender imbalance ratio. It means that there will be 30 million men of marriageable age compared to the number of women. It is clear that, for a man to get married, a property in his name will push his value up in the eyes of potential female partners. Parents finance the expense of the flat as they want their son to get married. The demand for property is partly due to the once prevalent-now abolished policy of only one child. It is clear that greater home ownership in China does not mean that the Chinese millenials are more financially responsible. It means that cultural mores compel them to buy residences.
Independent US buyers
The situation is radically different in America. It is seen that among US home buyers, only 25 percent utilized a gift from a friend or relative to provide a down payment. As per the 2017 Home Buyer and Seller Generational Trends survey conducted by National Association of Realtors, young US buyers are more likely to put their own saved money into buying a home rather than depending on free money.