We’ve keep hearing about millennials with regards to the workforce, relationships, and education. Now the older half of the generation is fast approaching their 30’s and they’re becoming a force to be reckoned with when it comes to homeownership. The March 2015 National Association of Realtors reports that millennials make up 32% of the home buying market and the 2015 TD Bank Mortgage Service Index states that 50% of Gen Y’s are either “extremely” or “very” likely to buy a home in the next 12 months.
So why does this matter and why are we talking about it?
Not your typical home-buyer demographic
Millennials are flipping the script on what the traditional homeowner of generations past looked like. Many are choosing to buy a home as a single versus waiting to get married. Older generations were known to tie the knot, get their first apartment, and save for their first home. It is not uncommon for a 20-30 something year old to live with mom and dad up until they transition to their own (purchased) home.
The burden of student loans
It’s no secret that the amount of student loan debt is growing in leaps and bounds. In the Forbes article, How Student Loan Debt is Affecting Home Ownership, the author shares: “According to the Federal Reserve Bank of New York, the average sum a student repays at the end of his or her education is increasing. In 2003, most graduates left with a loan (or several loans from different sources) that was between $10,000 and $15,000. But in 2012, that average increased to between $20,000 and $22,000.” Many things are taken into consideration when applying for a home loan and student debt is one of those things. Many new graduates, who are able to land a good job, started to create “good” credit while they were in school, and did not incur a ton of other debt, often have little to no issues.
One of the characteristics of a millennial is their desire to be a nomad. Frequent job changes and relocations are part of their lifestyle. Few millennials look for a long term career at one place of employment and they also don’t buy homes with the idea of being in that same home when their grandkids are born.
Not afraid of DIY home improvement projects
Do-It-Yourself home improvements are all the rage. Thanks to social media platforms like Pinterest, a new homeowner can embark on a journey of painting, wallpapering, cabinet makings, bookcase building, landscaping, gardening, and backyard ambiance creations with little technical skills. Shows, like Flip This House, have younger home buyers not afraid to look for a home in need of a bit of tender loving care versus the parade of homes model. Now please don’t start sending me hate mail about my so-called generalizations of millennials. We all know that no group of people will all fall into the exact same mold. However, we also know that each generation forge paths that are different from the generation before them and the millennial approach to home-ownership is no exception.
Millennials also are research savvy and do their homework beforehand. That is why we love to be able to offer our Free Guides for both sellers and buyers. We know there are a lot of agent choices out there and we fully believe people should be allowed to find out what they need to know before choosing. They should be allowed to get their questions answered without giving their phone number away to an agent who will pester them before they are ready to take the next step. So, enjoy your Free Guide and should you want to talk further, the ball is in your court.