Millennials are the missing piece of the market puzzle.

By
Real Estate Agent with Aspen Properties, Inc. BR511793000

 

Millennials are the missing piece of the market puzzle.

 

 

I was watching a video this morning that was talking about the Millennials and how they are the missing piece of the current real estate market. It got me to thinking about why that might be.

 

The first thing that came to my mind was that they are not driven to own homes the way previous generations were. The boomers were raised during the 50’s and 60’s and family was the focus of a life. We were encouraged to get out of school, get a job, and marry. Many boomers did not go to college because they simply could not afford to do so. Financial aid was not as readily available and if there was no money, children were pushed out of the home to get jobs and become self-supporting. Getting married and starting families followed close behind. Naturally home ownership was the next step. With good paying jobs and families on the way, home ownership was a natural progression.  

 

Today that is no longer the case. We have a massive population of young people with crushing debt from their college educations who cannot find jobs in their proven professions. They are educated beyond working in any kind of a trade and are either underemployed or not working at all. They find it easier to rent or live at home than to settle for less than they feel they deserve. While I don’t necessarily agree with that thought process, it is the prevailing one.

 

With the change in values, getting married and starting families is not a priority. Buying a home is not necessary and buying anything less than the perfect home is not desirable. A starter home is not an option. Add in high debt loads, difficult lending guidelines, and high home prices, millennials are not buying homes. Further, having watched the economy tank and living through the foreclosure crisis, many are also wary of making such a big commitment. Home ownership is no longer seen as an opportunity but rather as a burden. It is sometimes viewed as a necessity as lifestyles change but not a desired goal.

 

I know some markets are booming and are dealing with a shortage of inventory. That however does not carry over to every market. Millennial buyers are still missing from the marketplace and unfortunately will undoubtedly continue to be MIA. I believe it is because many cannot find good paying jobs, and the cost for payments, upkeep and maintenance, is beyond their ability. Many are choosing not to take on homeownership because it is seen as a burden they do not want to deal with.   It is simply easier not to do so. Until economic conditions improve and maturity brings lifestyle changes, homeownership is not going to be seen as a desirable goal. This could be troublesome for the real estate market for quite a while. We can only hope that economic conditions improve and prices level off to a point where homeownership is seen as a desirable goal rather than a burdensome necessity.

 

Thanks for reading, until next time…..

 

Sandra Paulow, Associate Broker, GRI, REALTOR®

928.242.0300

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SUCCESS WITH SANDRA!

 

 

  

 

 

Posted by

Sandra J. Paulow, Associate Broker, GRI, SFR, REALTOR®

Pinetop, Arizona

(928) 242-0300

spaulow.realestate@gmail.com

 

If you are looking to Buy or Sell Property in the White Mountains of Arizona, give me a call.  I have been listing and selling in this area since 2002.  With over 16 years of experience I can assure you I know how to treat a client.  For Service you expect and deserve, call Sandra Paulow. 

SUCCESS WITH SANDRA!

 

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Jim Crawford
Maximum One Executive REALTORS® - Atlanta, GA
Jim Crawford Atlanta Best Listing Agents & REALTOR

Sandra Paulow Thank you for taking the time to share this market insight!  It's most informative!  We really do live in changing times!

Jun 06, 2016 11:17 PM #1
Rainmaker
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Tony and Suzanne Marriott, Associate Brokers
Serving the Greater Phoenix and Scottsdale Metropolitan Area - Scottsdale, AZ
Haven Express @ Keller Williams Arizona Realty

Hi Sandra Paulow !

Thanks for a great post about millenials being the "missing piece" of the real estate market!

I like your writing style!

We wish you great success with your blog posts and networking with other members of Active Rain!

We clicked the “Follow” button on your profile so that we will be alerted to your future blog posts and can read and comment on them, and we invite you to "follow us" - should you be interested - by clicking the “Follow” button you see underneath our photo to the left. There is no requirement or obligation for you to do so, but we would be honored if you choose to do so!

Jul 25, 2016 12:03 AM #2
Rainmaker
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Sandra Paulow
Aspen Properties, Inc. - Pinetop Lakeside, AZ
REALTOR, Associate Broker, GRI, SFR

Hi Tony and Suzanne,  I have clicked the follow button.  Thank you for your comment and compliment.  I enjoy writing.  I haven't been a frequent poster recently, too busy doing business.  Hope you are having a good summer too.

Jul 25, 2016 02:34 AM #3
Rainmaker
292,385
Jack Lewitz
IL Real Estate Specialists - Evanston, IL

Time millenials changed their attitudes.

Feb 02, 2017 08:05 AM #4
Rainmaker
526,160
Dave Halpern
Keller Williams Realty Louisville East (502) 664-7827 - Louisville, KY
Louisville Short Sale Expert

Millennials will soon be a major force in driving the market. The more we can learn about this enigmatic home buyer, the better.

Aug 07, 2017 06:11 PM #5
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Sandra Paulow

REALTOR, Associate Broker, GRI, SFR
Find your perfect place in Pinetop, Arizona. Call Sandra today.
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