February 11, 2015

Millennials and the Market

Millennials, the most widely analyzed generation since the Baby Boomers, are changing the real estate market and how we buy and sell homes.  This age group, born between 1980 and 1995, are frugal, careful decision makers, coming out of the worst recession and real estate market in decades.  Despite this, research suggest Millennials are the fastest growing demographic in the real estate market.  Although Millenials have been sidelined by high unemployment, student loan debts, and tight credit- they have a different outlook on home ownership and long-term investments than previous generations.   Millennials tend to research upfront regarding location and availability, their societal trends play a major role- as they wait longer to get married and start a family, life events that tend to spur home purchases.

Millennials are not in a rush to buy their own homes.  In fact, many of them are not in rush to move out of their parent's house.  That doesn't mean, however, that they'll remain renters- or freeloaders in mom and dad's basement forever.   If Millennials are going to buy in- or buy a home, the conversation about their motivation for purchasing a home needs to shift.  This doesn't relate to the American Dream or the accumulation of things,  this relates to growing wealth and having the ability to pay off student loan debt.


One thing is for sure, young people have plenty of hurdles to overcome in regards to home ownership.




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