I’m a millennial.
I guess that also means I’m lazy, narcissistic, selfish, uninvolved, and unmotivated.
That’s the reputation people born between 1981-1996 are dealing with. Is this accurate? I for one highly disagree. Just like any argument there are two sides to the story and we’ll always have outliers but for the most part, every millennial I know is kicking ass at life and more importantly, pretty goddamn happy.
But I’m not here to take on the argument of whether millennials are lazy, selfish and unmotivated. I’m here to talk about how the largest demographic in the United States, the millennial generation, is changing real estate.
And for those curious, the millennial generation is also called generation Y, echo boomers, boomer generation, and the net generation.
How Millennials are Changing Real Estate
Real estate is changing and it’s mostly due to millennials and our preferred buying habits. Most millennials surveyed and those I know, are either renting or living with family until they can afford a home or making improvements on their current home hoping to get some “sweat equity” out if it and purchase their dream home next. That’s the boat we’re in and our last appraisal came back at almost double what we paid for the house!
When millennials search for houses, almost all of us start the search on our own through the internet, usually with the help of Zillow or Trulia. But with so many of us having high debt from college, it’s hard to get everything we want in a house in the neighborhoods we want!
Most millennials desire to live in urban, purposeful homes close to restaurants, shops and bars. We prefer no space to go wasted in the home and don’t care much for formal dining and living rooms but instead opt for multi functional rooms and open space.
Personally, I can see this creating a small housing crisis shortly! Think about it, what’s going to happen when all the baby boomers go to sell their large ornate homes in the suburbs but have there’s no one to buy them. Millennials are about to be the largest demographic purchasing real estate soon and most don’t want large homes in the burbs.
Another reason millennials aren’t buying big homes in suburban neighbors is millennial debt I mentioned! That, coupled with a rise in the popularity of minimalism amongst millennials many aren’t even purchasing standard real estate and are turning to tiny houses!
From the Urban Land Institute panel, experts found that 90% of millennials living with parents or family expect to move out within the next 5 years. Top that off with virtually all millennials surveyed saying they wish to eventually own a home and bam! An imbalance in the housing market.
Although the studies and statistics point heavily towards all the trends mentioned above, I’m one of the outliers. I’m a millennial already dreaming about our next house far out of town and on many acres of land! Let me know in the comments if you’re a “millennial” buyer or an outlier to the rule!
Oh! And the most important and something I am hearing more and more is the one thing almost all millennials can agree on is the desire for a safe outdoor recreation area. In cities, this means bike lanes, dedicated open space and parks with running trails. Even though millennials are the most tech savvy generation, we are also the most active and put a value on outdoor space that no other generation has before.
To Recap: 8 Ways Millennials are Changing Real Estate
-They almost always start their search online first.
-They don’t want large homes in the burbs.
-They want to live in cities and close to shops, restaurants, bars, transit systems and offices!
-They want technologically advanced homes that are also energy efficient and “green.”
-They want safe outdoor recreation areas that are easily accessible.
-They wish to find a sense of community.
-Millennials are the fix it generation and aren’t afraid of fixer uppers.
-Turnkey, builder grade, cookie cutter homes won’t cut it anymore with millennials. We want unique, artsy fartsy and purposeful!
Let me know in the comments if you agree or disagree with this research! Do you think the millennial generation is going to make a huge impact on the real estate market?
I’ll be experiencing it first hand soon enough as Todd and I gear up to help people find houses, buy them, fix them up and move in – the client, not us 🙂
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