Millennials face different challenges
Because millennials have not entered the housing market as early as previous generations, rumors have surfaced that Millennials are lazy freeloaders living in their parent’s basements. While it may take longer for some young people to leave home, this is not a reflection on their work ethic or their ambition. It is primarily due to increases in tuition costs and a poor economy that has left the millennial generation in a tight spot as they kick start their careers. With the economy looking up and many millennials finishing their education, this age group is now looking pretty seriously into the housing market. According to a recent study from Realtor.com, “this group’s usage of mobile real estate applications and websites is on the rise…up 61% year-over-year as of July.”
Millennials are starting their families later in life. In general the millennial generation is spending more time in college, and therefore starting their careers later in life as well. A later career start often translates to a delay in starting a family. While this may mean that 25-35 year olds are looking into the housing market a bit later, it’s been good news for the rental market.
Millennials have often been categorized as city dwellers, not interested in the suburbs. This is not necessarily true. Schools are exceptionally important to this age group and as a result many millennials are willing to move out to the suburbs in search of better school districts for their children. According to a Realtor.com survey, “When house hunting, those born after 1980 are less likely than other generations to compromise on school districts…Fifty-two percent of millennials said the quality of a school district could be a deal breaker in their search for the perfect home, compared with 31% of all buyers”
Millennials have been rumored as not being interested in homeownership. But just because young people today are renting longer doesn’t mean that they don’t have hopes for home ownership. Research from the National Association of Realtors reveals that “87% of millennials view homeownership as a good financial investment”.
What do Millennials Want?
With the promise of millennials diving head first into the housing market in the next few years, considering what interests this generation could lead to valuable information to both buyer and sellers.
- Amenities – Having spent more time renting in big cities millennials are used to the convenience of public transit and a walkable lifestyle. Coffee shops, grocery stores, bars and work within walking distance are a definite plus.
- Home Technology – Growing up with technology millennials know how to use it, and want to. Technology connected homes have great appeal to the tech savy. Good cell phone coverage is also a must.
- Smaller flexible spaces – The idea of the “grand dining room” is dying out with this generation. In favor of more affordable utility costs, millennials like multi-purpose rooms instead of extra rooms. One room that can be a dining room, media room and play room by simply rearranging furniture is much cheaper to heat and light than three rooms each serving a separate purpose.
- Good schools – Education is vitally important to this generation and they are not inclined to compromise on it. Good school districts are a strong point for young people on the edge of parenthood.
Millennials are about to emerge as big players in the real estate market and business world. Having grown up in a very different economy from generations before, experienced soaring education costs, and faced tighter credit requirements, it’s understandable that it is taking them a little longer to build their nest egg (and they may be guarding it with their life), but they are getting close to hatching into the housing market.
If you are a millennial ready to move into the next phase of your life give Waypoint Real Estate Group a call today and let us help you make a wise invest in your future.