Shifting Narrative: Millennial's Active Role in Real Estate
Millennials are the largest generation to come of age (the average age of 23) in the US. This past summer, Millennials were responsible for 30% of the home buying and 14% of the home selling that took place.
What are the primary causative factors contributing to the surge in millennial engagement with the market?
86% of millennials indicated they were looking to buy due to family composition change, marriage, birth of a child or planning for the birth of a child. This increased pattern of engagement is expected to continue as future job creation favors the millennials because in addition to being the largest generation, they are also the most educated. (SOURCE)
What do millennials look for when they purchase a home?
- Amenity-rich environments-millennials like to be close to everything they need, transportation, work, coffee shops, and bars. Additionally, once inside of the home, millennials are seeking connectivity. Good cell phone coverage is reported to have made or failed to make 28% of home buying decisions.
- Affordability-Within reason-millennials carry with them student debt and many have low paying jobs. In order to be a part of the market, millennials understand smaller spaces can have huge potential. They are looking for modern homes that are cost and energy efficient. (SOURCE)
In the years to come, the millennial’s impact on the market will only increase. Understanding the mind of a millennial will be an imperative trademark of a successful real estate office. The millennials will set the pace and the level of service, I am excited to see what ripples that will have on the market.