For those of you who are still unsure what the definition of a “millennial” is, it’s anyone born between the early 1980s and early 2000s. Known as the “Me Me Me Generation”, Millennials are the largest generation in American history with almost 80 million people. What may come as a surprise is the number of Millennials who are choosing to stay living at home with their parents – a whopping 36% to be exact. What is keeping them from going off on their own? Lower incomes, student debts, unemployment, qualifying for a mortgage, high rent, and difficulty finding affordable housing.
So what effect does this have on our economy, more specifically the real estate market? For starters, there will be more first-time buyers throughout the country with equal interest in single family homes and townhomes. Millennials tend to follow the path of their parents which means buying home in the suburbs, but also maintaining access to cities and amenities. They are also more inclined to make smarter investments by having more social and economic responsibilities than ever before. They also love technology and short cuts to answers. The more accessible and personable a real estate professional is the more likely they are to start a relationship with an agent. It’s all about establishing trust, providing instant gratification and paying attention to their needs. With the help of social media, real estate professionals across the country are able to connect faster with this powerful generation.
Millennials are expected to represent over 50% of buyers in 2017. The question if this generation will revolutionize the real estate market will be answered very soon!