Here Are Three Things Millennial Home Buyers Are Looking For
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As a result, millennials (also referred to as Generation Y) face obstacles to becoming homeowners that their Baby Boomer parents and their Generation X parents did not. One in three adults will be Millennials by 2020. Millennials aged 25 to 34 want to buy homes, but they can’t until job markets improve and more affordable housing is available.
Millennials’ challenges
Affordable housing, jobs, and inventory are the main obstacles Millennials face.
Affordability
Low wages and staggering student loan debt pose a double threat to millennial homebuyers. In the years between 2008 and 2012, student loan debt grew by six percent on average every year. In the face of rising property prices, owning a home becomes a moving target as a result of student loan debt.
In 2013, college graduates earned an average annual salary of $34,500, the lowest wage since 1998. In which areas are these graduates most likely to find affordable housing? Austin, Texas, and Salt Lake City, Utah were named as areas with “relatively affordable” properties.
Jobs
As a result, millennial buyers have fewer employer-funded benefits, like health insurance or pensions, available to them in today’s subdued job market. The amount of cash available for home purchases is significantly reduced for employees who pay for these things themselves. Millennials are drawn to cities like Austin and Dallas, Texas, and Grand Rapids, Michigan, as having the strongest job growth.
Inventory
The Ogden and Salt Lake City, Utah, as well as the Minneapolis-St. Paul Bloomington MN-WI metro areas had the fastest increases in housing inventory. Millennials prefer homes and neighborhoods that offer a good selection of choices, wherever they look for their next home.
Savvy home buyers: Millennials
Millennials are no longer tech-toy-crazed materialists: they’ve evolved into responsible and resourceful consumers. As a result of the Great Recession, all of that changed.
The Millennial generation currently spends about $200 billion a year and accounts for about 25 percent of the workforce. By 2020, they will make up the majority of the workforce and spend twice as much.
A recent report indicates that Millennials have a high value placed on neighborhoods as well as their homes. There is a preference for open-plan single-story homes, wood or tile flooring, and environmentally friendly “green” features among millennial home buyers.
All of their purchases – including homes – are made online by millennials. Additionally, Millennials can get personalized mortgage rates online in addition to searching the web for homes.