Millennial real estate trends are no joke. Would you believe me if I told you that millennials rule the housing market? Well, it’s true! Here’s why…
Millennial Real Estate Trends
Today, the largest homebuyer age group seems to be the millennials, and they are changing how communities in America look. However, what are the factors that are driving this age group into home purchase?
For starters, about half of the millennial population is dealing with student loan debt, but this is not deterring them from inroads into the real estate market. Instead, the generation considers purchasing a home as a sound financial investment. While debts might not be holding back millennials from owning homes, it’s prompting them to look into affordable neighborhoods.
Unfortunately, the housing supply is placing pressure on the millennials’ search for affordable housing. As some have children, they have to consider neighborhoods with the best schools, and they want areas that are walkable so they bring along their dog and strollers. In consideration of these and more factors, the millennial generation is rapidly changing the real estate market in several ways.
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The Rise of Surban Neighborhoods
As the years advance, more and more millennials are opting to leave away from the bright lights. In fact, only a small proportion are buying properties in urban areas; however, they are not going for the strip malls they had while living in their childhood suburbs. Instead, the modern millennial prefers living in a suburban neighborhood – an exquisite mixture of both suburban and urban living.
Such neighborhoods offer millennial parents access to affordable areas with access to pedestrian-friendly shopping areas, open green spaces, and public schools. Surban housing options are not only priced better, but they are also in better condition compared to urban housing. Such choices leave the millennials more money to enjoy the finer things in life like first-run movies and restaurants.
Migrating to the Midwest
Midwest cities like Omaha, Nebraska feature low housing costs while offering great job opportunities. The Midwestern cities have an average unemployment rate of about two to three percent, which is below the national average of four percent.
The biggest selling point for these Midwest cities is their low price points. Take for example, purchasing a starter home on the coasts would cost between half a million to a million dollars. Such prices are way beyond the millennials’ budget, which drives them to find more attractive and affordable housing options in places like Minneapolis.
Furthermore, most Midwest cities are coincidentally homes to numerous universities and colleges. Such a college town means that there is always something to do, an event to attend, or even something artsy to go to. Plus, all these amenities and more are at an affordable level.
After doing a thorough research job online, the millennial homebuyers are entering the market better prepared. For real estate agents, this means that they don’t need to introduce the millennial to homes they can find online, but they should show them things they cannot find. This includes things like up and coming neighborhoods like those in Texas, more info here, that are likely to gain value in the near future.
The Rise of Longer Working Hours
Cities like Kansas City, Mo. are rapidly putting in place measures to ensure that they are perfect for millennials that are looking to move there. In part, this is due to billions of dollars invested for creating the necessary infrastructure that’s attractive for both businesses and residents. Part of the strategies includes creating an 18-hour city that is active all day and part of the night.
Such cities enjoy below-average unemployment rates, which is a great deal for any millennial looking for a place to grow their careers and call home. Such jobs include call centers and data centers that are looking for affordable land as well as where they can attract young energetic employees.
Increased Energy-Efficiency Awareness
Apart from demanding surban neighborhoods, the millennials are also keenly interested in communities that offer energy-efficient amenities both outside and inside their homes. Reduction in heating and cooling costs is particularly attractive in the current economy where home prices are high. Not only does this mindset make you feel better about saving the environment, it also helps you save money in the process.
It’s easy to see why millennial home shoppers are preferring homes with solar, start energy rated appliances, LED lighting, high-efficiency cooling systems, Pex plumbing, smart technology, and hybrid hot water heaters.
Devolving Tech Hubs
In the past, landing a great tech job meant that you had to move your entire family to Silicon Valley. Fortunately, the tech industry is now nationwide, which means that techies with all types of lifestyle needs can virtually live anywhere and call it home. To prove this, Austin, TX is fast becoming south’s Silicon Valley as big tech names like Facebook and Amazon setup shop there.
Drive for Perfection
While millennials are not likely to spend their entire lives in the first home they purchase, there are a few features they find attractive. For starters, many home-buying millennials would rather purchase newly constructed homes so they deal with and avoid problems with renovations, plumbing, and electricity. This means that you are more likely to be attractive to the millennials if you have a new construct or rehab.
One of the reasons for this trend is because the millennial doesn’t have time or the money to carry out home renovations. In addition, this generation of homeowners is attracted to big kitchens, open floor plans, updated kitchen and bath, and home offices. Other important considerations for this generation include great cell reception and access to various Internet providers as well as an ideal location that’s close to their workplace.
Whether you like it or not, the millennials are having a profound effect on the real estate market all over America. In the meantime, expect the generation to maintain the current momentum and even build on it.
Millennial Real Estate Trends Conclusion
On the other hand, finding a sustainable and affordable family home in the fast-growing surban neighborhoods is not as easy as many would like. In addition, negotiating a great deal in the competitive real estate market is harder. With such trends driving different home purchasing patterns as well as the rise of new neighborhood types, one thing remains constant – millennials will require the services of a real estate agent to successfully navigate the ever-expanding real estate industry.
Everything You Need to Know About Millennial Home Buyers (2019) – by Ryan Fitzgerald
Millennial Home Buyers Changing the Real Estate Market! – by Eileen Anderson
Selling Your Home To Millennials – by Petra Norris
Millennial First Time Home Buyers – by Paul Sian
15 Things Millennial Home Buyers Look At While Buying A House – by Kyle Hiscock
Tips For Millennial Home Buyers – by Bill Gassett