Millennials. Go ahead, groan, I know you want to. When I hear “Millennial” I even want to groan, and I am a Millennial!!
I feel like the word just has so many layers to it at this point, and those layers run the whole spectrum from good to bad to ugly. That being said, one thing that Millennials have undeniably brought to the table is change. And change can be good, bad and ugly depending on how you look at it. But on the other side of change is a bright future!
Real Estate: The Millennial Wave
So many areas of life have evolved exponentially since Millennials have hit the work force—we’re on the brink of self-driving cars and you can get a burrito delivered by drone (which even I think is a bit much…I’m cool with regular delivery)—but one area that is just now catching up with the expectations of Millennial consumers is the Real Estate market.
The housing market seemed like it was going to escape the scrutiny of the Millennial consumer for years, however as Millennials hit their 30’s we have seen a huge shift in the entire home buying process. The 18-35 year old demographic now makes up 36% of the market, and that number is only going to grow as more Millennials look to purchase their first home. Given that Millennials make up the largest bracket of home buyers, it really is important for real estate agents and the real estate industry as a whole to embrace the change and not be left in the dust.
Busting Millennial Myths in Real Estate
Let’s bust two myths I keep hearing—
Myth #1: Millennials don’t want to settle down, they want to rent edgy, tiny apartments and move from place to place forever.
The Real Deal #1: Millennials actually do want to own homes! In 2016 the Consumer Reports National Research Center surveyed 1,573 US Millennials regarding homes, the home buying process and their ideas on home ownership. Though just shy of a quarter of Millennials currently own their houses, 71% of Millennials aspire to be homeowners! The issue is that many young professionals are still managing hefty student loans from college and the cost of living just keeps going up, thus saving that nest egg for a down payment is really difficult for many Millennials. Student loans are actually cited as the most common reason why Millennials are waiting to buy homes until later in life, as compared to previous generations.
Myth #2: All Millennials want to live in the heart of a city.
The Real Deal #2: This one may shock you, but Millennials aren’t actually chomping at the bit to live smack in the center of metropolitan areas. They value experiences highly, but also highly value privacy, hence the goal is not actually living downtown, but keeping the downtown accessible—being able to enjoy the amenities of the city but not having to deal with city noises through the night, sparse parking, etc. Only about 25% of Millennial homeowners actually own properties in urban areas.
For more insights check out What Millennials Expect of the New Real Estate Market
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