Over the past 5 years or so, Millennials have completely changed the real estate market. What exactly is a Millennial? Well, you may get a few different answers depending upon who you ask. If you ask the National Association of Realtors the answer is any person born between the years of 1980 and 1998. But, how exactly have they influenced a shift in the market?
Check Out These Ways Millennials Have Influenced the Real Estate Market
Voice calls as a main source of communication are a thing of the past. Using text messages to send quick communication that does not require complete interruption of tasks is now the primary form of contact between clients and agents. As jobs and other things in life demand more of our attention buyers, millennials especially, like that they can multitask while communicating via text message.
More and more buyers are making sure they are not hastily entering into the biggest purchase of their life. They know that buying a home is about much more than just falling in love with one. Most buyers start their search online. They look into neighborhoods, browse homes, schools, estimated fair market values, and even read the fine print of a pending deal. Millennials have not forgotten the recession of 2008 that caused a huge blow to the housing market. They do their homework to make sure they are making a solid purchase. There is more information at our fingertips today and it makes for a much smoother buying experience when buyers educate and ask questions about the home sale.
Finding Information and Advice Online
As technology quickly advances all around us, much more of the real estate process happens online. The largest group of buyers to fully utilize online tools, apps, and communication with professionals is Millennials. Millennials are also more likely to shop around for the best agents, mortgages, and contractors using online tools, instead of going with the first one they find.
Focus is Changed to Making an Investment
Younger home buyers are interested in owning a home with the focus being on building up equity as an asset and building long term wealth. As the equity builds in a home this allows the possibility of someday owning a dream home.
Kid-Friendly Homes are in Demand
Millennials may be waiting to get married and have kids later in life, but now that they are at an age where they are starting families, they are searching for homes to comfortably fit a growing family. Gone are the days of a condo in the center of the city for a majority of millennial buyers says research.
Walkable Neighborhoods are Important
Though millennials are trading in the city for the suburbs, they don’t want to give up being able to walk to nearby hotspots. In high demand are residential neighborhoods within walking distance of commercial spaces and parks. Some newer construction developments have begun to build master-planned communities around a town center hub.
More Interest in Garage Space and Kitchens
When asked which features buyers are looking for in a home, features that made life more convenient won out over luxury and trendy finishes. The top three sought- out features from the polls were a garage, large kitchen, and space to grow.
Higher Prices Don’t Create as Much Sticker Shock
Affordability is still a hurdle for a large number of millennial buyers, especially younger millennials. Higher prices have not caused millennials to give up on owning a home. Millennials who have taken some time to save up money and be financially ready to meet mortgage requirements are ready to rise to the challenge of higher prices and even a more competitive market. This is the generation that is used to fighting to get into college and to beat out others for their dream job.
Lower Down Payment Requirements
Somewhere around 70% of millennial buyers look to make a down payment of 20% or less on their mortgage. There are more mortgage products on the market with low down payments today than in the recent past. Today’s median home down payment is just below 15%.
Whether it’s your first home, or you’re a seasoned vet who’s dabbled in real estate before, we would love to connect with you to help you achieve all of your real estate goals.