According to recent news, millennials are too broke and too busy eating avocado toast to buy homes. However, while it’s true that millennials aren’t buying homes as quickly as past generations, avocado toast is hardly to blame (and besides, it tastes delicious!).
The reality is, millennials are slower to buy homes due to a complex web of reasons: debt from student loans, which are higher than ever before; a higher cost of living; increased real estate prices, which are outpacing wage growth; fierce competition in the hot housing market; and more rental options than in the past.
Despite all of these difficulties that they face, this generation is finally starting to buy homes. In 2017, millennials were the largest group of home buyers, taking up 34 percent of the market. In contrast, baby boomers made up 30 percent of the market in 2017. As millennials begin to buy more houses, here are a few trends to keep an eye on.
1. Millennials Are Moving to Seattle!
1. Salt Lake City
6. Los Angeles
7. Buffalo, New York
8. Albany, New York
9. San Francisco
10. San Jose
2. Millennials Stick To A Budget
Just as they tend to be when it comes to quality clothing, food, and other material possessions, millennials are focused on sticking to their budget and getting the most value out of their money. Perhaps because of their experiences during the fairly recent economic recession, this generation prioritizes a sound investment. According to experts, millennials are also more assertive in negotiating prices, which might give them an advantage in today’s competitive market.
3. They Are Changing the Roles of Real Estate Agents
Around 90 percent of millennials still use a real estate agent. However, this relationship is changing. It’s no surprise that millennials often begin their home search on the internet, and so rather than looking to agents to help them find homes, millennial buyers needs agents to help facilitate a sale and its negotiations and contracts.
4. Millennials Want Safety, Privacy, and More Space
Most individuals in this demographic are buying homes because they are moving in with partners, getting married, having their first child, or are simply tired of renting. Many millennials are seeking homes in suburbs close to urban centers or in up-and-coming neighborhoods, just outside of a city’s most central, and most expensive, areas. Similar to baby boomers, this demographic is increasingly seeking to buy single family homes and townhomes that offer more space and quiet than urban condos. Realtor.com predicts that in 2017 housing market competition will be more fierce among millennials looking to buy affordable starter homes.Whether you’re a millennial, a Gen Xer, or a member of any other generation looking to buy or sell your home, be sure to contact the SeaReal Team at 206-518-5518 or firstname.lastname@example.org