Although the Millennial generation is facing challenges that often block their ability to purchase a home, more so than any previous generation, they are still buying. As 2019 rolls along, real estate agents who know the current Millennial home buying trends will have an edge when helping their clients find their dream home.
Single and Nesting
Millennials are reaching their prime homeownership years and most of them are single women. With higher wages and more spending power, single women are looking for a nest where they and they alone, have full say in decorating, gardening, and entertaining. Shirking apartment living where their money is going to something they don't own and privacy is compromised by shared walls and shared outdoor space, they are settling down in cozy stand-alone homes that give them a quiet retreat and the freedom to do as they please, including owning a pet without any restrictions. Similarly, unmarried couples are combining their incomes to purchase a home. They are building a future and buying a home is an investment they can afford together whether they marry or not.
It's All About Money
It seems that everything financial is against the Millennials when it comes to buying a house. They are taking longer to make that big purchase as they drown in student loan debt, hunt for jobs without stalled earning potential and deal with the recession. Additionally, rising market prices and soaring interest rates make home ownership seem unattainable. In most states, Millennial home ownership is down as much as 4.4%. First-time buyers are struggling to get enough cash for a down payment and many resort to borrowing from their parents.
Competing With Mom And Dad
Every generation wants something different in their home. Or do they? While the kids are starting a new life and having families of their own, Mom and Dad are downsizing, giving up their large homes for smaller ones. The result is two completely different generations with two different points of view competing for the same small homes in walkable neighborhoods with more upgrades. This presents a challenge for real estate agents who have to satisfy both generations.
Sweating The Equity
Unlike their parents, Millennial buyers are more aware of the work and costs of a renovation and they are more than willing to put in the sweat equity to get the house they desire. Popular TV shows are educating the young consumer who learns what the red flags are and what to look for. They have more confidence in renovating a house and are aware that in order to get what they want in their budget, they have to do some work.
They Know the Deal
Millennials enter the market prepared. They use online research and social media to find what they are looking for and to compare prices, so they don't need a realtor to find them a house. Instead, they rely on their agent to show them what can't be researched such as up and coming neighborhoods and properties that will rise in value in the near future, as well as guidance for negotiation and inspections. Reviews steer them to the right agent who has a strong online reputation for advising and getting clients their home. A realtor who knows the ins and outs of social media will do well with Millennial clients.
Even with having to deal with financial obstacles, Millennials, particularly those nearing the age of 30, still make up the largest segment of buyers for 2019. Millennial real estate trends will shape the investing landscape for the foreseeable future. When it comes to selling a house staging is the number one tool to turn a looker into a buyer. Contact us to learn more about staging.