Millennials represented 32% of homebuyers in 2014.
Millennial home buyers are home buyers that are between the ages of 18 and 34 in 2015. During their coming-of-age years, many millennials witnessed the Great Recession. This, combined with student loan debt, has caused some millennials to postpone home ownership…until now.
The same millennials that were forced to move back home with family have weathered tough job markets and are now emerging as the domineering class of home buyers. Here is why!
Why Millennials Are Becoming Home Owners
“Millennials in Utah are particularly interested in home ownership. Approximately 41% of Millennial households own their own homes, as opposed to 30% of Millennial households nationally.”
So why are millennials, especially in Utah, becoming homeowners faster than any other generation? Well, economic times are changing and with the Great Recession waning and the housing market picking back up, home ownership is now in reach and worth pursuing.
Millennials also are enjoying:
- More job opportunities.
- Less worry about finding a job they love, that can support them financially through the purchase of a home.
- Home values that are rising again, making now a good time to become a homeowner before getting priced out of the market.
- More programs for first-time home buyers than ever:
- FHA home buying programs
- HUD home buying programs
- USDA home buying programs
- Financing programs with lower down payments
- A healthy savings for a down payment, with the help of family. In fact, 13% of parents have helped millennials with a home purchase and 17% intend to provide help in the future.1
- An inventory of older homes with some character. These older homes are providing more value than many new homes.
- The full power of a data-driven internet to find the best information available to home buyers.
- Knowledgeable, no-nonsense Realtors that are savvy with online data, marketing, and insider knowledge of neighborhoods.
for the well-qualified.
The Impact of Millennial Home Buyers on Real Estate
Millennials are accustomed to fast-paced communication and availability of most information at their fingertips. They are the first generation to be fully immersed in smartphone use for a large portion of their lives.
Home sellers and real estate agents are finding that millennials know what they want, have researched what they want, and prefer a transparent approach to home buying. Realtors must be well-informed and ready to work as a guide instead of a pushy sales rep.
Long gone are the days of a real estate agent presenting all of the properties for sale in your area. Instead, buyers have a leg up with smart online marketers putting properties at their fingertips. These changes have led to new real estate marketing techniques and low pressure sales tactics. I think this is a good thing.
Are you a millennial who needs tips on how to start your home buying search? Now is the time and I am here to help! Please leave any questions or concerns in the comments so I can help you on your journey.