How Millennials Are Changing Today’s Housing Market
Millennials are one of the largest groups of people on the planet. In fact, by 2025, it is believed that millennials will make up three-quarters of the global workforce. As a result, they will also make up the majority of people looking to buy, sell, or rent homes or apartments.
Whether they do what The urban avenue says and get assistance finding a high-quality apartment to rent, or consult a local agent to buy a property, millennials will be some of the most involved individuals when it comes to real estate.
With how big of a role millennials will have in the global real estate market that is worth hundreds of trillion of dollars, they are at the heart of many trends in real estate. This article is going to look over a few of them.
They Are Open to Non-Traditional Options
One of the biggest and most common trends amongst millennials in the real estate market is that they are open to non-traditional options. Sure, some will go out and buy a standard house, there are plenty of other options many are taking. Communal living, living in tiny homes, prefabricated housing and even living on the go in mobile homes are all common.
Some like to do this to save money, or simply because they desire something different than the status quo. The freedom offered by many of these lifestyles is attractive to a portion of millennials. Also, many individuals in this group decide to continue renting for the convenience and flexibility it offers them. Many are also willing to move away from their home city or town to chase opportunity, and may not be as tied down as past generations generally have been.
Millennials Are Looking for Specific Things in a Home
When millennials do look to buy or rent a home, they know what they want. They often have a lot more on their wish lists than previous generations and are willing to go get it. Many millennials value convenience in a home, such as one that is very close to their place of work.
Many millennials also want a home that is efficient and even smart. They are also willing to buy smaller homes and make sacrifices when compared to previous generations that wanted the biggest home they could afford. Speaking of affordability, it is often of the utmost importance to millennials.
Most don’t want to purchase homes out of their price range, as many saw what happened globally in 2008 and want to avoid getting in over their heads. Millennials want homes that they can afford, even if they don’t check off all of their boxes. They are also willing to sacrifice things like trips and shopping to save up for a larger down payment. All of this is very important for sellers and builders to be aware of. The better they know this large group of potential buyers, the more successful they will be.
Many Are Still Living at Home with Extended Families
While millennials are among the largest participants in the real estate industry, there is still a large percentage of them still living at home. This is true all over the world, especially in many countries throughout Asia. Of course, in many areas, most notably in Cambodia, this is due to cultural practices wherein it is much more common for people to continue living at home.
However, it isn’t only cultural reasons that are behind the large number of millennials still living at home. Some do it because the home or apartment prices are too high, and others do it because of tough job markets. If people can’t afford to move out (either to rent or buy), they don’t exactly have a lot of options when it comes to leaving the nest.
If homes become more affordable worldwide, or income levels see some increases, the already-large pool of millennials buyers and renters will only get bigger.
Whether they are renting a home, buying a home, or even selling, millennials play a large role in many trends within the global real estate market. This group knows what they want, is open to non-traditional options and many are willing to wait for what they want by living at home longer. As millennials continue to enter the real estate market in larger amounts, it will be interesting to see what trends present themselves soon.