The well-chronicled generation is once again making headlines, as they made history (yet again) this time in real estate. Like everything else, they’re taking home-ownership in a technological fashion.
They’re capitalizing on their tech-savvy nature to get all the information they need when considering a home. Added to that is the financial constraints that bind the hands of these budding homeowners. Thus, realtors are taking on the challenge to suit the needs of this growing demographic power.
A Slow-Paced Buying-Force
Their college debts, unstable income and delay in marriage or raising a family affect the growth of the real estate sector. The more households formed, the greater the need for homes. But for the millennials, they have other more important matters in mind.
A good education is crucial for the improvement and security of their careers. This demographic cohort is also not in a rush to tie the knot and have a family. However, the desire to own a home is there.
In fact, the 2017 National Association of REALTORS®, 34% of the overall home buyers are Gen Ys – the largest share in four consecutive years. The figures are expected to grow in the next three to five years.
A Research-Driven Generation
Millennials are among the biggest consumers of information, thanks to their empowered fingertips. A remarkable online presence is a growing need to ensure business success. As a result, real estate agents are refining their websites, investing in professional photos, site functionality and loads of essential community info.
Despite their technological prowess, millennials still require the assistance of professional brokers in purchasing a home, as they know they need utmost assistance in the step-by-step process. Interestingly, they’re generally confident in their real estate agent.
A Ready Home
According to Nationwide Mortgages, 48% of Gen Ys prefer new homes to avoid renovations, for they have no time or cash for additional repairs and expenses.
The same study also found out that 46% of these young homeowners want a luxury kitchen, as this area is becoming the “hangout center of the house.” An open floor plan for easy room-to-room access is also becoming a factor in choosing a home.
Energy efficiency, updated baths, available home office space and new technology are also must-haves in any house for sale, as they’re becoming “deciding factors.” The location is also a mandatory consideration. As for millennials, nearly 50% live in suburban communities while only 25% live in urban areas.
A Temporary Abode
The average homeownership tenure of millennials is four years shorter than the preceding generations, according to Market Leader. The same article reports that 60% of these young owners expressed their plans of selling their houses next year. This is perceived as a positive move, which can ultimately fuel the real estate market.
Nationwide Mortgages also noted the trend. In their study, 11% of Gen Y owners “define homeownership as permanent.” To make things more interesting, 66% of their respondents consider their current home as a “stepping stone” towards their dream house.
Every starting-at-life adult experiences setbacks and constraints before he or she can firmly stand on his or her own two feet. Even those 37 and below professionals who live with their parents or rent rooms or apartments also have dreams of having a place they can call their own.
This demographic cohort has seen the dangers of investing or settling down too soon or too late, so they’re just taking it easy. In due time and it’s only logical that a bigger shift will take place, and this time, the millennials taking over almost every corner of society – most especially the real estate market.