More millennials are buying houses. Thus, they make up a large percentage of the housing market. According to the National Association of Realtors (NAR), 37% of homebuyers are millennials. This makes them the fastest-growing market of all homebuyers.
Younger millennials are buying their first homes now. Older ones are selling their current homes. They’re moving on to their second homes. This generation is taking over the housing market. Yet, they’re approaching it in their own way. The previous generation affected the housing market before them. Now, millennials are making their mark.
Robert DeFalco Realty is happy to bring you the latest in housing market news. This article focuses on millennials’ effect on the housing market. It also discusses how they have changed real estate.
Housing Market News: Millennials’ Home Buying Trends
Millennials have become the largest segment of homebuyers. This is because they have become older and reached a stable point in their careers. Thus, they are earning a higher income. They have also been paying off their student and personal debts. This puts millennials in the prime position to start looking for homes.
This is also likely in part due to the COVID-19 pandemic. Lower interest rates have made it possible for more millennials to buy homes. Millennials are quickly changing the housing market. Their digital upbringing usually drives this. Let’s explore how this generation has changed today’s housing market.
Millennials Wait Longer to Become Homebuyers
Millennials wait longer to buy their first homes. This is because of student debt, the recession, and the increasing prices of homes.
Many millennials save up for down payments by living with their parents. They put off buying a home until they’re financially stable. According to the Pew Research Center, 52% of people between 18 and 34 live with their parents. This is because of the pandemic and other economic factors.
This may also be because they’re starting families later in life. One study showed that only 46% of millennials are married. 83% of the previous generation were married at the same age.
They’re Not Settling
Millennials aren’t settling for adequate homes. They want to fill their requirements exactly. They have many demands when searching for a home. These include an open floor plan and good Internet and cell service. Millennials also prefer updated bathrooms and kitchens. They also appreciate greener features like solar panels.
Millennials have taken longer than previous generations to buy their first home. Thus, they’re taking more care to ensure it’s perfect. They want to avoid maintenance. Thus, they look for turn-key homes that don’t need updating.
Millennials Make Informed Decisions
Millennials are known as informed buyers. This is because of the popularity of the Internet. They have information at their fingertips. They are research-oriented and know their options. This isn’t only true for researching homes.
Millennials also prefer options when it comes to mortgages. Only 55% of the older generation shopped around for mortgages. For 18–34-year-olds, this is 86%. Millennials also got six different mortgage quotes before deciding on one. Baby Boomers only got three mortgage quotes
Online Research Is Key for Them
Millennials are informed buyers because they research houses online. A recent homebuyer report demonstrated this. It showed that 44% of millennials said they would buy a home based on the listing photos they saw online.
They’re also changing realtor habits because of this. Realtors now have to take advantage of online listings to appeal to this group.
Millennials Are Opting for Online Mortgages
Besides taking their searches online, millennials are opting for online mortgages. Previous generations preferred going to a bank or asking realtors about mortgages. Millennials shop around on the Internet. This is because of the quick response and easy user experience.
They’ve Made Technology a Key Part of the Homebuying Process
The NAR shows the importance of technology in real estate. They say 99% of millennials use the Internet in the home buying process. Only half of Baby Boomers did the same.
Technology has become an important part of navigating the housing market. Millennials are increasingly using cell phones and tablets to find their homes.
They’re also communicating with their realtors through texting and instant messaging. They usually reserve phone calls for urgent matters. Millennials have also made video tours and live streams of homes more popular. They don’t rely on pictures alone.
Millennials Prefer the Suburbs
The housing market for millennials is in the suburbs. One study showed that 47% of millennials own homes in the suburbs, compared to rural and urban areas. This is likely because they prefer bigger and updated houses. These are more affordable in the suburbs than in urban areas.
They’re Changing the Function of Realtors
Real estate agents have taken a backseat in searching for homes when it comes to millennials. They prefer to do this online and then search for a real estate agent. This has changed the function of realtors.
The previous generations valued buyers’ agents for their ability to find homes. Millennials rely on realtors for other purposes. These include relationships with other parties and negotiation skills.
Real estate agents are still an important part of buying a home. Yet, millennials depend on them for a different reason. Their value comes from guiding buyers through the home buying process. They also come up with marketing strategies.
Robert DeFalco Realty Can Help You Navigate the Housing Market
Millennials have changed the housing market. They have paved the way for the increased use of technology. They have also redefined how we buy and sell homes.
If you’re looking for help navigating this new world of real estate, look no further. At Robert DeFalco Realty, we can guide you through home buying and home selling.