Nationwide homeownership is at an all-time low of 63%, which drops all the way down to 34% in the Millennial demographic. There are many reasons why this demographic has yet to buy, and it’s not just their age. Below is a closer look at the Millennial real estate mindset and how to best serve them.
Millennials Aren’t Ready To Settle Down
Millennials are more open to the idea of relocation for work than any other generation prior. They are also more likely to live a laptop lifestyle, where they have no official home base. Since they aren’t ready to commit to a city, they aren’t ready to commit to real estate. However, Millennials are more selective about their rental units—and they are willing to pay for luxury amenities not often found in rentals. So, this drastically expands the renters market.
They Were Watching Closely During The Housing Crash
This is a savvy generation who is determined not to allow history to repeat itself. They have done the math, and understand the true cost of seemingly low mortgage interest rates. They also understand that paying off their average $40,000 student loan debt is a priority. When they are ready to invest in real estate, they are likely to put more money down, to have less debt when they do buy—and to pay their mortgage off faster.
How To Target This Hesitant-To-Buy Generation
Millennials may not be ready to buy, so the real estate industry has had to make some major strategic changes:
- Trends in minimalism and low-cost living have many Millennials opting to rent or build tiny homes, or live slim to save for the dream home they plan on buying down the road. This means more low-cost rental options are a must.
- Cash positive Millennials are searching for luxury rentals with amenities like energy efficient appliances, top-notch master baths, pools, multi-car garage and more. Many are willing to pay handsomely to rent, rather than commit to buy. This means selling your home may not be the most profitable long-term decision.
- Millennials are looking for furnished homes and long-term Airbnb’s and vacation rentals. This makes short-term leases, even at a premium price, far more in demand.
- Speaking of vacation, Millennials are more apt to buy a vacation home or investment property than a primary residence.
- Leveraging virtual technology for both rental units and homes for sale in NoVA is a must for satisfying this generation’s need for instant gratification.
The average Millennial will be looking to settle down once they are about 10 years into their career. At this point, they will likely have their debt paid off—and will be looking to pay in full, or provide a substantial down payment when they buy.
If you are a Millennial ready to buy a home, vacation property, invest in real estate—the team at Jerry Sardone Realty would be happy to discuss your options.