Millennials are labeled a lot of things.
Entitled, assertive, frank, picky, socially conscious, choosy consumers, achievement-driven, masters of work-life balance, tech-savvy, foodies, impatient, and intellectual, to name a few.
But there’s one label in particular they’re about to lose since the onset of the pandemic and its overhaul of Americans’ lifestyles – perpetual renter.
Eight months into the pandemic, millennials (ages 23 to 38) – who have notoriously been tagged as the group most likely to delay homeownership – are helping the home sales market recover in many cities across the U.S.
They are buying homes in droves.
In fact, Americans under 35 have a homeownership rate of 40.2%, according to the most recent quarterly data, up from 37.5% the same time last year, according to Census data.
Realtors, here’s why you might be fielding more sales calls from hopeful millennial first-time homebuyers – and what they’re looking for in their investment.
Millennials Have More Savings Thanks to COVID Lifestyle Changes
Stay-at-home orders and travel restrictions nationwide appear to have had a positive effect on millennial pocketbooks. They’re saving more and stockpiling enough funds for down payments on homes.
Their spending & saving habits have changed and tightened when compared to their habits pre-COVID. And with more disposable income, they’re realizing they might not have to put off homeownership any longer.
Millennials Want Safer Investments
Millennials are now looking more toward real estate as a safer investment over the volatile stock market. Real estate’s passive income power, tax advantages, and appreciation potential is a safer risk.
With median home prices still on the rise in many cities, and inventory low, millennials are flocking to find place offers & lock in mortgage rates before steep rate increases happen again.
Millennials Now Need a Home That Works for Their Lifestyle
With so many COVID restrictions on activities and travel, millennials are realizing the value of creating a home that works for the needs of their socially distanced lifestyle. For example:
- They’re looking for homes with ideal workspaces for remote work
- If they have children, they’re looking for more flexible space for at-home learning
- Kitchen, living area, and bathroom upgrades are at top of wish lists
- Outdoor living areas and spaces for home gyms are among growing requests with our emphasis on health & wellness
- Younger millennials and Gen Zers want smart, technology-integrated homes that offer efficiency
- The popular open concept layout of yesterday is becoming less so.
Need a Star Lender Referral? We’d Love to Help Your Clients!
As you work with homebuyers of all generations to find the homes of their dreams, we’d love to be on your short list of lender referrals.
It’s easier than ever to apply for a loan with us, and we’re happy to connect with your client to help them confidently choose a loan program, get pre-qualified, and get on their path to homeownership.