Ask the Expert
By Holly Schwartz
There’s been a lot of talk about the millennial generation, which describes people in the age range of 18-
34, and how they are impacting the housing market. It turns out they’ve been slower to buy real estate than past generations due to student loan debt, poor credit, and trouble getting work. So are they just saving up waiting to catch us off guard and scoop up the housing inventory? Or will they be the generation that favors renting over homeownership? Millennials and their absence in real estate ventures is a topic raising a lot of eyebrows and being heavily researched. Here are some of the findings to help you prepare for the possible millennial real estate invasion.
They Have Plans to Buy… In the Future
About 75% of millennials surveyed by ApartmentList.com have the intention of buying a home. A quarter of them plan to buy in the next two years and the rest plan to wait until after 2018. Why the wait? The big difference is that more millennials are waiting until they are closer to the age of 30 to buy a home. In previous generations it was more common for people to buy homes in their 20s, which is why it is big news that this generation is waiting longer to buy. Instead they are choosing to either live at home longer or rent longer.
They Look at Homes as an Investment
When I asked my sister (one of the roughly 83 million millennials that populate the U.S., according to census.gov) about her generation and real estate, she summed it up pretty accurately. She said that people are not looking for their dream home. They’re just looking for a place they can use as a stepping-stone. A recent Forbes.com article pointed this out as well and it makes sense. After all, homeownership isn’t the only thing happening later in life for millennials. So is getting married, having children, etc. The result is that more millennials are buying homes for either convenience or investment and thinking of them as a short-term plan.
Homes They Target
Let’s face it. Millennials will soon be either your competition in buying a home or a prospective buyer for your home, so it’s a good idea to size up what they will be searching for. The Bankrate website came up with a list of millennial homebuyer must-haves that I think is a must-read. One thing that is high on their wish list is the technological capabilities of the home. The article mentions that things such as the cell phone signal and cable/internet provider may be a deal breaker for clients. It may seem out of this world, but it’s true. I’ve had millennial homebuyers place a huge amount of importance on these amenities. They are also looking for low-maintenance homes. Some millennials like to be busy. Others are more carefree. In either case, household chores are not something they want to cram into their weekends. Another big-ticket item for millennials is an open concept to allow for entertaining.
So it’s true, the younger generation is taking their time to get into the real estate circuit. However, they’re not avoiding real estate, they are just putting their own new age twist on the real estate patterns of the past.
Holly Schwartz lives in Costa Mesa and works for Villa Real Estate
