If you’re not in the real estate business, you might be surprised to learn that the millennial generation, which is those born between 1981-1997, are currently, at close to 85%, the most likely to consider purchasing a home. Also, Millennials make up about 45% of all mortgages right now, comparatively, Gen X's are at 37%, and baby boomers at 17%.
So what does this mean for you? Maybe nothing, maybe everything. If you are in a 55+ community this article is probably going to mean very little to you, but everyone else that owns a home should pay close attention. You see, Millennials are changing the game when it comes to real estate, not only with how they search for homes to purchase but also with where they purchase and what they purchase.
The misconception is that Millennials were not considered to be serious homebuyers because they were simply content with renting or living at home with their parents. The reality is that millennials have had, up until recently, a pretty tough barrier to homeownership. Between, stagnant wages, student loans, and credit card debt, their ability to save for a home has been challenging. In fact, Millennials are actually more interested in buying a home than their parents. They are hungry for it and they have been patiently waiting for the perfect opportunity, and that opportunity is happening right now.
So, what do Millennials want, where do they want it, and how are they finding it?
Generally, they want an eco-friendly home with an open floor plan and the latest technology that suits their lifestyle. For some, this means yard space for their fur babies and an organic garden or an extra room that can be used for meditation. In most cases, millennials will be less likely to automatically pay up for more square footage but look to homes that have good use of space. The desire for an expansive luxury kitchen is common amongst these young buyers.
Where? Believe it or not, millennials are primarily choosing to move to suburban areas just outside of a big city because of the lower cost of living as well as access to better schools. According to 2017 NAR, only 15% of Millennial buyers purchased a home within an urban location. Wesley Chapel just so happens to fit this need to a T!
How do millennials find these perfect homes? Technology! Now more than ever before has technology been utilized in real estate, overwhelmingly due to this generation of home buyers. This generation is both captives to and captivated by technology. In 2019, it was reported that 81% of older Millennials found their home through a mobile app. Long gone are the days of listing a home for sale in the classifieds or even on Craigslist. It is now competing for exposure online, on social media, and in mobile apps.
So, is your home ready for the largest generation of buyers?