Getting To Know The Millennial Home Buyers
The Millennial Generation (sometimes also referred to as “Generation Y”) are those people born between the years 1980 and 1995. They are now the largest generation in history, boasting approximately 90 million members. Research has indicated that qualities of the millennial home buyers are characterized by self-confidence, technology, high levels of education, and social connection.
Their buying habits are puzzling the marketers and researchers in all industries. They seem to ignore traditionalism one minute, then embrace it the afterwards. While many people attribute all of millennial behavioral habits to high saturation of technology, there are far more factors to consider. We have a better grasp on their values and motivations based on their home buying decisions now that many Millennials are reaching adulthood. Essentially, the real estate market is an excellent indicator of the Millennial mindset.
Below are few things you need to know about the qualities of the millennial home buyers:
- Recession Mindset. Millennials were and are extremely affected by the Great Recession. Studies have shown that these people are thrifty and cautious in their financial decisions, especially due to large amounts of college debt and poor job prospects. The labor market has been challenging for Millennials, and over half say that they simply can’t afford to buy a home yet, but when it’s time to do so, this is when their buying mindsets come in.
- “Waiting-longer-to-buy” Attitude. If Millennials are following the classic trend of home ownership, they will live with parents first, then become renters, then homeowners. If they move back in with parents after college, this process is set back few years. Additionally, single homeowners are far less common than married homeowners, simply for financial reasons. It’s not that Millennials won’t buy homes…they’re just delaying the process.
- Home Ownership Style. Not only do Millennials want different things in a home…they view home ownership itself differently than previous generations. Whereas Baby Boomers and some of Generation X viewed home ownership as more of a status symbol or a long-term investment, Millennials see owning a home as more of a necessary rite of passage. The home itself is not as important as the independence and security that comes with being a homeowner.
- Tech-Minded Preference. Millennials have been known as the first generation really introduced to the high-tech world before adulthood. Therefore, technology has become an important factor and qualities of the millennial home buyers.
- Most Influential Force on the Market. Millennials may be late bloomers when it comes to home ownership, but they’re certainly not absent from the real estate market. For the second year in a row, NAR’s study found that Millennials made up the largest group of recent buyers at 32%. More than half of 18- to 34-year-olds have expressed a desire to buy a home in the next five years. A recent report by Harvard predicted that the numbers of millennial households are expected to increase by 2.7 million in the next 10 years, thereby strongly boosting the demand for new housing. We’re currently on the edge of the Millennial housing market, and it’s by far proving to be incredibly strong.
Millennials have been fashionably late to the real estate market. However, they’re showing up now with a strong presence, ready and excited to own a home. Should you need more info, call us now and we are more than willing to assist and guide you in buying your dream home. You may reach us at 216-282-4332. You may also reach us at this link – www.cpdhome.com or like us on Facebook. We’ll be glad to talk with you!