What Realtors Should Know About The Millennial Housing Market What Realtors Should Know About The Millennial Housing Market

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What Realtors Should Know About The Millennial Housing Market

The millennial generation is considered a little enigmatic in marketing circles, and a considerable amount of research has been conducted to understand how they think, what they buy and how they live. The real estate industry is taking serious notice as well.

At 75.4 million strong, millennials have now surpassed baby boomers as the largest generation alive, according to the U.S. Census Bureau. However, with 57 being the median age of today’s homeowner, millennials still fall behind boomers when it comes to homeownership.  (Source: Zillow Group Consumer Housing Trends Report 2018)

So what do shifting tides in real estate’s newest power generation mean for the industry? One thing is certain: Whether buying, renting, or investing in real estate themselves, millennials are a true force in today’s housing market.

Key Drivers in the Millennial Housing Market

Jobs

Though it might seem obvious, proximity to career centers is the first priority of the millennial housing search.

Recent polls reveal 87% of millennials say career opportunities and ongoing professional growth are important to them. Combine that with another study showing this generation tends to “job-hop,” switching jobs an average of four times in their first 10 years after college (compared to two times for the previous generation), and here you have a group that prefers areas with many employment options.

Affordability

Because many in the millennial generation are still paying off student debt and confronted with stiff competition in a low-inventory housing market, affordability is key.

Of the millennials who are looking to buy homes, many are bypassing the concept of the starter home and looking for larger homes that fit into their budgets.

The thinking is that buying a home just to move five years later doesn't seem like a viable option whereas earlier generations went for the "starter homes", millennials are thinking well into the future as far as growing a family.

Experiences

Millennials are looking to spend more money on experiences instead of things.

Cities are making investments in downtown renovation, public space, transportation, dining and entertainment which will attract millennials looking to buy homes near places to gather with friends, eat, drink and exercise outdoors.

Pittsburgh, for example, is experiencing a revival of its downtown, including new bars, restaurants, galleries and music venues. Similar cities that have experienced an economic downturn in the past can help re-attract young residents by adding these types of amenities to their neighborhoods.

Room to Grow

Will millennials stay in these urban environments forever? Though they are having children later than previous generations, more are beginning to start families. This supports a growing migration to the suburbs, which offer more space and affordability.

As the millennial generation ages into adulthood, they are choosing the suburbs over urban neighborhoods, skipping the traditional starter home and staying in the same city when they move.  As a result, millennials and first-time home buyers will flock to the suburbs for a greater variety of homes at relatively lower prices

What do millennials want in a neighborhood?

Whether you’re targeting millennial renters or homebuyers, consider neighborhood attributes such as:

1. Safety and crime rates
2. Local school ratings
3. Supply/demand balance
4. Strong rental demand
5. Nearby amenities (public parks and spaces, transportation systems, shopping plazas, restaurants, sports complexes, etc.)

Conclusion

If you want to buy rental property in a real estate market that appeals to millennials, look for cities that strike the balance of affordability and diverse job opportunities. Consider expanding your search to single-family homes in the suburbs, which offer more space for growing families. And definitely focus on desirable neighborhood amenities.

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Subscribe to our YouTube Channel!
Revival Property Group
"Real Estate Solutions At Your Convenience"

 

The millennial generation is considered a little enigmatic in marketing circles, and a considerable amount of research has been conducted to understand how they think, what they buy and how they live. The real estate industry is taking serious notice as well.

At 75.4 million strong, millennials have now surpassed baby boomers as the largest generation alive, according to the U.S. Census Bureau. However, with 57 being the median age of today’s homeowner, millennials still fall behind boomers when it comes to homeownership.  (Source: Zillow Group Consumer Housing Trends Report 2018)

So what do shifting tides in real estate’s newest power generation mean for the industry? One thing is certain: Whether buying, renting, or investing in real estate themselves, millennials are a true force in today’s housing market.

Key Drivers in the Millennial Housing Market

Jobs

Though it might seem obvious, proximity to career centers is the first priority of the millennial housing search.

Recent polls reveal 87% of millennials say career opportunities and ongoing professional growth are important to them. Combine that with another study showing this generation tends to “job-hop,” switching jobs an average of four times in their first 10 years after college (compared to two times for the previous generation), and here you have a group that prefers areas with many employment options.

Affordability

Because many in the millennial generation are still paying off student debt and confronted with stiff competition in a low-inventory housing market, affordability is key.

Of the millennials who are looking to buy homes, many are bypassing the concept of the starter home and looking for larger homes that fit into their budgets.

The thinking is that buying a home just to move five years later doesn't seem like a viable option whereas earlier generations went for the "starter homes", millennials are thinking well into the future as far as growing a family.

Experiences

Millennials are looking to spend more money on experiences instead of things.

Cities are making investments in downtown renovation, public space, transportation, dining and entertainment which will attract millennials looking to buy homes near places to gather with friends, eat, drink and exercise outdoors.

Pittsburgh, for example, is experiencing a revival of its downtown, including new bars, restaurants, galleries and music venues. Similar cities that have experienced an economic downturn in the past can help re-attract young residents by adding these types of amenities to their neighborhoods.

Room to Grow

Will millennials stay in these urban environments forever? Though they are having children later than previous generations, more are beginning to start families. This supports a growing migration to the suburbs, which offer more space and affordability.

As the millennial generation ages into adulthood, they are choosing the suburbs over urban neighborhoods, skipping the traditional starter home and staying in the same city when they move.  As a result, millennials and first-time home buyers will flock to the suburbs for a greater variety of homes at relatively lower prices

What do millennials want in a neighborhood?

Whether you’re targeting millennial renters or homebuyers, consider neighborhood attributes such as:

1. Safety and crime rates
2. Local school ratings
3. Supply/demand balance
4. Strong rental demand
5. Nearby amenities (public parks and spaces, transportation systems, shopping plazas, restaurants, sports complexes, etc.)

Conclusion

If you want to buy rental property in a real estate market that appeals to millennials, look for cities that strike the balance of affordability and diverse job opportunities. Consider expanding your search to single-family homes in the suburbs, which offer more space for growing families. And definitely focus on desirable neighborhood amenities.

Follow us on Facebook and Instagram!
&
Subscribe to our YouTube Channel!
Revival Property Group
"Real Estate Solutions At Your Convenience"

 

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