Millennials are perhaps one of the most misunderstood people today. Older people think they are too idealistic and lazy, and for younger people, millennials can be too traditional. But even if they are seen this way, many millennials have found a place in the modern workplace. They are hardworking and well-adjusted individuals, and often their comfort with technology and innovation makes them ideal employees for the digital workplace. Pew Research revealed that while millennial workers tend to job hop, they prioritize their relationships with superiors and have intuitive knowledge of technology.
However, the financial well-being of Millennials can be quite complicated. For one thing, the rate of earnings for young adults has remained considerably the same over the last five decades. There is also the unemployment rate for young adults in the years that followed the recession to take into account.
All that stereotyping is about to change; according to Bloomberg, 38% of millennials now make up the largest share of homebuyers in the United States. Bradley Nelson, chief marketing officer of Sotheby’s International Realty, said that millennials just took longer to jump on the “land for sale” bandwagon.
No longer contented with “starter homes” as older generations did in the past, millennials would rather go big when it comes to making their house purchase. Investopedia says that older millennials have taken their time getting a college education, grow in their careers, and pay off their student loans. Because of this, many millennials are approaching the housing market more differently.
House Hunting With A Digital Twist
Millennials are known to be technology savvy. Many are hooked on their devices, as well as social media. Thus, it comes to no surprise that they have dedicated the time and the research on house hunting. In a 2017 report from the National Association of Realtors, 99% of Millennials did their research online before they made their purchase. The respondents mostly searched for general information and tips when it comes to buying a house.
Nice To Meet You!
Since millennials tend to be techy, they prefer their communication with their real estate agent to be done mostly by means of text messages. Many clients scheduled appointments and made inquiries via text message. More pressing concerns that needed to be addressed immediately were made through a phone call.
Because of this trend in electronic communication, many millennial clients are requesting brokers to incorporate broader features on how they list homes, such as using live video streaming when presenting potential properties up for sale.
Starter Homes No More
Many Millennials are foregoing the “age-old” tradition of purchasing a starter home, living in it, starting a family, and then trading it up for a bigger home. These days, millennials are looking for prime real estate: deluxe homes in suburban neighborhoods.
Realtor Magazine revealed in 2018 that these young buyers dropped a cool $300,000 or more, which was a huge difference from the $150,000 to $250,000 that most first-time homeowners would pay for their homes.
It was also found out that 47 percent of these millennial homeowners prefer to live out in the suburbs and adapt to a suburban lifestyle as opposed to living out in the big cities. The skyrocketing costs in rent in the big cities are thought to be why many of these young homeowners are moving into the suburbs. Since many tend to be cost-conscious, moving into a less populated area in the suburbs would be a good move in their books. ;
Increasing Incomes Means A Chance To Move Up
It might have taken a while for many young homeowners to purchase their home, but now that they have the opportunity, they are grabbing it by the horns. It is true that many make less than average than their parents before them, but hourly wage is steadily increasing. Because of this, homeownership is now a luxury many of their age group can afford.
A change in the housing market will certainly affect how the real estate industry does business in the long run. By embracing digital technology and the way, communication is done will result in a more efficient process of doing business. Focusing on the positive aspects of change will lead to growth and a more improved buying process. When the need for change presents itself, it is always best to respond positively to its call.
It can only be expected that an influx of millennials will be homeowners in the years to come. With this, you can expect more changes, and the world is only eager to see what these will be.