Generation Y (the “Millennials”) will shape the housing market for years to come, as the Baby Boomers did prior to the Great Recession. The approximately eighty million Millennials, born between 1978 and 1995, however, have different motivations for buying a home than their parents did. Here are the major reasons Gen Y members will be buying homes, according to a study by ERA Real Estate:
- Personal achievement. Millennials want to own something, to be independent. They see home ownership as an important step in their growth as people.
- Personal space. Most respondents value living space in a home, while less than half think that space for family members is important. Millennials want their own space, but want to keep their families close.
- Work and play. Gen Y’ers want to be as close as possible to their place of work, and they consider the distance from work to be more important than their distance from their friends or whether they live in a good neighborhood.
- Function over looks. The vast majority of Millennials consider built-in amenities to be very important, while the style of a home is very low on the list of important things. Members of Gen Y are practical. They are also concerned with environmental friendliness.
The CEO of ERA Real Estate, Charlie Young, concludes, “Our survey indicates that Gen Y clearly understands the long-term value of home ownership from a financial standpoint. Beyond that, Millennials view a home as a cornerstone in building a family and spending time with friends, not just a place to eat and sleep. For Gen Y, owning a home is the foundation for one’s life.”
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Michael Dunsky Vice President of Mortgage Lending P: (508) 528-1800 F: (508) 749-7695 Michael.Dunsky@guaranteedrate.com guaranteedrate.com/MichaelDunsky NMLS ID: 21372 38 Pond St, Ste 208 • Franklin, MA • 02038 NMLS ID 2611 Licensing Information: http://www.guaranteedrate.com/licensing |
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