With every generation, there comes new trends, changes in habits and behavior, and differences in lifestyle preferences. Born between roughly 1980-1999, the Millennial Generation is a perfect example of how drastic those differences can be from the one before it.
- Millennials are the largest generation ever.
- With those large numbers comes substantial purchasing power.
- They are the first generation to grow up with computers in their homes.
- They are, as a result of constant access to technology, also the most connected generation ever.
As a result of these findings, it's interesting to look at Millennials from a Real Estate perspective.where do Millennials want to live? HOW do they want to live? and Who do they want to live with?
New NAR (National Association of Realtors) research recently identified ten metropolitan areas that have a young adult population with solid job growth rates and relatively affordable home prices. No surprise to us at Live Urban, the Mile High City easily made the cut Denver has seen a solid inflow of Millennials while it shows promising job growth and gains in median home prices.
In a recent panel on the Millennial Generation's potential impact on housing, several findings were reported:
The Millennial Generation is far more diverse than other large generations such as the baby boomers and Generation X, the panelists said. Because of this, it can be dangerous to assume that the strong views advocated by a vocal minority that millennials prefer not to buy homes, or that they will never move to the suburbs are representative of the entire generation.
The sheer diversity of millennials naturally leads to a diversity of outlooks regarding things like getting married, having children and housing preferences, said University of Southern California Professor Dowell Myers.
Millennials are willing to compromise on housing space but not features. Flexibility in housing is among the generation's highest priorities.
Most panelists agreed that millennials would, eventually, enter the housing market and buy homes. But unlike prior generations, millennials are much more likely to view housing as a lifestyle choice, not as an investment or an economic choice.
To be honest, we think this is a great way to look at any real estate purchase.whether buying a property to live in or to manage as an investment, it really all comes down to lifestyle choices
- How much of your budget are you willing to put toward a monthly mortgage payment?
- What kind of neighborhood will you be happy living in?
- What type of home do you picture yourself living in?
- Do you want to be a landlord, and will you be good at managing a Real Estate portfolio?
All smart questions to ask before making a big decision...and likely a Millennial will reach that answer by crowd-sourcing, researching, and analyzing both their feelings and their data, all through their smart phones.
If you have questions about this data, or would like more information, contact us.
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