There are more millennials than there were baby boomers.
This fact on its own may seem like a random addition to a real estate blog, but there’s something fascinating hiding in there: The potential for one of the most stable housing markets in history.
With more buyers than there is the supply of homes, and an entire age group changing the way they buy homes to navigate student debt worries and what feels like an unpredictable economy, the millennial housing boom is beginning and it is set to create a great housing market for years to come.
So what do homebuyers and sellers need to know about millennials?
We’re breaking down some key things that will help you better understand how this generation (overall) is buying houses so that you’re prepared for what the millennial housing boom means for you.
Buying or Renting?
While their parents rented before buying a home more often than not, millennials are faced with a unique set of challenges whether they buy or rent.
That’s because housing prices are up to 70% higher for millennials than for their parents and rents have risen by nearly 50% in that time.
So, more millennials are seeing homeownership as a viable option when they consider that they could be paying a mortgage with their rent money.
Long Commutes Are Expected
While their boomer counterparts had shorter commutes, millennials often travel 2 hours or more to work so that they can live in more affordable neighborhoods because of the rising home prices.
This means that areas that were once considered “out of the question” for other buyers because of their distance from city centers or suburban corporate centers are now viable options for millennials.
And this generation includes many people whose jobs allow them to work from home, making location less of an issue than it had been in the past.
The Myth Persists
The old common knowledge even a few years ago was that millennials would not buy homes.
They’re buying differently: Preferring smaller homes with minimalist and sleek details. They’re not excited by the McMansions their parents and grandparents favored either, which is already driving large-home prices down exponentially.
While it’s impossible to categorize or pigeon hole an entire group of people, it seems that millennials enjoy being a part of the communities they live in and many are attracted to areas with character, not simply “popular” areas with mass appeal.
And when it comes to the numbers, this demographic isn't waiting to get married to buy a home but they are sometimes dipping into a retirement account to get the funds to make that purchase.
Interest Rates Are Fueling The Millenial Housing Boom
They’re looking for housing now and they’re taking advantage of record low-interest rates. While not all millennials are in the position to buy right now, those that recognize the potential upside to making the investment in real estate at this particular time in history.
How To Take Advantage of the Millennial Housing Boom
If you’re selling your home you may want to consider how it meets the needs of this particular age group.
Do you have a smaller home with minimalist, sleek, or refined features?
Work with your real estate agent to highlight that fact
Is the commute to a major city or town center less stressful than in other areas of your town or state? Be sure home buyers know it.
Does your town or neighborhood have unique features, a welcoming community, or something else to offer younger people?
Explore this with your agent so you can make that part of the conversation.
Are you ready to sell now?
Allowing a millennial buyer to take advantage of low-interest rates is great.
Does your home have an office or area where a work-from-home station would be well suited?
Make sure your agent is aware of how that area can function so they can highlight that in your listing and photograph that area for visual appeal.
Wondering What Else You Can Do?
Whether you’re a millennial looking for your first (or next) home or a seller looking to make a great first impression on millennial home buyers, I can help you make that happen.
Reach out to me here to get started!