Why Millennials Are Key To Growing Real Estate Markets
Making up the largest demographic of home buyers in the U.S. at the moment, millennials are a force to reckon with in markets all across the country. While some Generation Y are still climbing out of student debt or finally deciding to spread their wings and get their own place, many others have already taken that leap of faith and are thriving.
If you have not yet purchased your own home, do not fret, as your time is coming. This article explores reasons why millennials are important to the real estate industry and gives insights into the power they wield as savvy, educated, and prepared real estate consumers.
Millennials Are Actively Buying Homes
Millennial home buyers account for more than 35% of the overall U.S. real estate market and represent over 68% of first-time real estate investors. Now that the economy is getting stronger and continuing to improve, these percentages will continue to increase. As those in this generation begin to establish careers and make families, their desire to settle down will increase to.
Millennials Are Tech-Savvy
Many professionals in the real estate industry have gone high tech, or at the very least, have websites that provide some sort of home search capability. Many agents post their real estate listings on various social media platforms and third party property listing sites. This is ideal for millennial home buyers as many of them frequent the Web daily and prefer to do their research/analysis and source their information from online media sources.
They know how to compare listings, look for specific details, get directions to and drive by homes, and are very willing to contact agents to work with or to get properties shown to them. Their reliance on technology is a key factor why millennials are a force to be reckoned with in markets across the country.
Generation Y Can Live Anywhere
Unlike many in older generations who prefer quiet locales, many millennials prefer the hustle and bustle of activity. They are not inhibited by sights or sounds and are actively looking for homes in the suburbs, urban areas, small towns, rural areas and even resorts. The appeal of living in towns and cities, because these areas are within walking distance to their work places, restaurants, shops and entertainment choices, is often a high priority.
Millennials Seek Out Small But Efficient Spaces
Many local real estate markets nowadays are comprised of a selection of small housing units. The reason for this is that many real estate developers subdivide their apartments into small units for quick selling. Millennials are ideal buyers for these housing units as they meet their efficiency needs without wasting any space.
Many like the idea of minimalist living because this lifestyle provides them with financial stability and flexibility to do other things they are passionate about. Many are savvy enough to understand they do not need more than they can use and avoid becoming house poor to own a larger space.
They Seek Out Desirable Features
Many real estate properties are loaded down with state of the art features. Some of these features include high-end energy efficient appliances, large living and storage options, specialty rooms (game, theater, wine cellars, etc.) and even high tech gadgetry. It is no wonder the younger generation looks for these features...many grew up in homes that either did not have these advanced features or they did and they want even more. What they typically will not do is overpay to get these desired features.
They See The Advantage Of Owning A Tangible Asset
Unlike individuals in the older generation who have been relying on intangible assets, such as investing in the stock market, the younger generation sees several advantages in owning tangible assets. One of the tangible assets most of them have been investing their hard-earned cash is a real estate property. Their decision is supported by several financial experts. Most of these experts share their preference for investing in tangible properties over the stock market.
Growing Careers and Raising Families
As local real estate markets flourish, the Y generation is often leading the charge. While many of older generation are starting to lean towards downsizing, individuals in the Y generation are starting to grow their careers and have children. More available funds and the need for stable housing makes investing their money in a real estate property not only a smart decision but one of necessity too. With the potential of higher returns in the future, they appear to be on the right track real estate wise.
In a nutshell, buying a home or any real estate property is a smart and achievable goal. If you are stuck because of financial reasons, talk with a lender who may have options at their disposal you were not aware of (do not let outstanding student debt scare you off from seeking a home loan). It is a good time to be a millennial buyer, so do your homework, and find the home of your dreams.
