Millennials, born between 1982 and 2000, officially became the largest generation in the United States, according to 2014 census data. This means that, unless your real estate is strictly targeted towards the older generation, you will need to attend to the market demands and requirements of this new booming population.
Over 83 million Americans are part of the “Millennial” demographic, and are seeking new and exciting real estate prospects. Here are the things millennials are looking for:
Primarily, millennials are more likely to rent than buy. Though homeownership rates have fallen in every age group, millennials have had the biggest drop. In fact, millennials are almost entirely seeking renting alternatives, and are predicted to rent for far longer than other generations do. Now that mortgages are more difficult to get and pay off, homeownership is taken as a much less exciting prospect.
Similarly, millennials are mostly looking at suburban properties. This is due to the tendency for suburbs to be more affordable, while offering the same or similar benefits as urban developments. Amenities are increasingly important to new homebuyers, and the housing bust is still fresh on the minds of many millennial property-seekers.
Millennials are still looking for real estate agents or brokers to help them make purchases. First-time buyers still comprise 35% of all homebuyers, which means that the market is still largely inexperienced. There is no downward trend for agents and brokers!
Millennials are also looking more and more to Midwestern cities. If you’re looking at regional trends in growth and development of home-selling opportunities, Midwestern cities currently have the best prospects. Places like Wisconsin, Ohio, and Nebraska have high rates of new homebuyers, which could be attributed to a wish to be close to one’s hometown.
Millennials want to be homeowners, but don’t think it’s possible. Survey data found that, though millennials are increasingly renting properties or staying at home, they have a desire to own a home just like every other generation. However, the problem comes from mortgage rates and loan debts. According to Kamran Rosen, “many young renters in the survey appear to be on the brink of homebuying, and 49% said their next move would likely be to own a home.” Millennials have not given up on the long-term prospect of homeownership.
Finally, privacy and higher quality living spaces are key selling points for millennial renters. Though they’re still looking to rent, millennials are overwhelmingly attracted by high-rate amenities, like travel and transit accessibility, diversity, population density, and privacy in the space itself. Even student properties are beginning to address these needs.
All in all, recent data has shown a growing trend towards stable, future-oriented growth, while the present market is concerned more with renting. Millennials are still keeping the real estate industry booming, just in different ways than previous generations.