Today, millennials are the most dominant force in real estate. So what does it mean for these first-time buyers and EVERYONE else?
Millennials were slow to start in the home buying game. But now that they’ve hit the market in full effect, they’ve quickly become the driving force in the marketplace—in 2016, they made up 34% of home buyers, the largest group for four consecutive years. Their decisions set the trends. Their preferences set the tone. And, beyond that, their approach to every aspect of home buying from down payments to renovations to specific wants, needs and neighborhoods has set the bar for all things real estate.
- Less than TWO IN FIVE submit offers with 20% down. A whopping one in five opt for the minimum: just 5% down or less.
- 43% of millennial buyers aren’t clear on what they can afford—not surprising, considering 71% are buying a home for the very first time.
- More than three in five search properties to rent AND properties to purchase at the same time—many know finding the right home in the right community at the right price will be a challenge, and looking for a rental gives them some breathing room.
- Millennial buyers are also keen to get creative in coming up with their down payment—the biggest hurdle for the majority of buyers. Nearly one in three ask friends and family for help, and many pull from a variety of sources to get the cash together.
- HALF make multiple offers, and close to two in five veer off their financial plan at the end of the day—especially if it means making their dream home a reality!
- Because rents in major urban markets are at an all-time high, it’s been tougher than ever for new buyers to save for their down payment AND afford sky-high rents in the meantime. This has shifted the way millennial families think about their next steps—and the suburbs in general.
Now the big question: what, specifically, are these buyers looking for? According to a recent Realtor.com survey, the suburbs are still number, with 43% of first-time buyers naming the ‘burbs their preferred location. Half of millennial buyers want “near” or “outlying” suburbs, while 11% are looking for small-town living. And those houses? Two in five are in search of a single-family home, while 34% are planning on a townhouse and 10% on condos.
And after these buyers? It’s all about Generation Z, the generation right behind the millennials. These teens and tweens—born in the mid-90s through the late 2000s—seem to be mimicking their millennial parents and siblings in their views of home buying. Zillow predicts, “These tech-savvy yet risk-averse,” students “are bringing their social personalities home, desiring communal amenities geared toward bringing people together.” We’ll have to wait a few years to see—but, for now, it’s all eyes on the millennial buyers and how they’re shaping suburbia.
Suburban Jungle is an award-winning firm that specializes in moving families from urban to suburban. The company’s innovative “town first” approach helps buyers find the right suburb for their family based on personality and lifestyle, not just the house. Services are FREE and fully customized to each family and their unique journey. To learn more and to connect with a Suburbs Strategist, and find the place your family truly fits in visit www.suburbanjunglerealty.com and click GET STARTED.