February 5 2020

Millennials Are Dominating the Real Estate Market in 2020

by racheal

man holding a drink on a couch

Millennials are the next generation of home buyers that are making a wave in the real estate market this decade. They are the largest U. S. generation ever and are definitely making an impact. Millennials are expected to buy more homes in the next year than both Generation X and baby boomers combined. With lessons learned from previous generations, this group of tech-savvy adults has come to make decisions with a very different perspective. 

 

Despite the popular belief that millennials are less likely to invest in purchasing homes with their overbearing student loan debt and love for Starbucks, they are taking homeownership to a new level. Millennials were the most dominant buyers in 2019 and will play a large role in the coming year as well. In 2016, adults 36 years old and younger accounted for the largest portion of homebuyers at 34 percent. Millennials make up 56 percent of first-time homebuyers according to Zillow.

 

Rent prices are continuing to rise and more times than not, a mortgage may turn out to be much more affordable for a 30 something adult. This generation is taking its time and planning accordingly when it comes to their first home purchase. We are seeing many millennials becoming more frugal by moving back home with family members in order to finish school and save for their first new home.

 

Millennials rely heavily on technology to find and purchase homes

 

This is the generation that is extremely tech-savvy dominating with the love of social media. Millennials are twice as likely to use their cell phones as aids in their home search process compared to the baby boomer generation. There is literally an app for everything these days including an app that will assist in searching for and eventually purchasing a new home. In 2017, 99% of millennials searched online prior to making their first home purchase. These same buyers tend to look for properties with a social media prescience when trying to find the right home to fit their needs. Apps like Trulia, Realtor.com, and Zillow are just a few of the tools that have helped millennials dig into the real estate market.

 

Millennials are going green

 

Millennials are very interested in minimizing their carbon footprint by going green, which means they are on the hunt for lots of green features both inside and outside of their home. This generation is very environmentally- conscious and is looking to have efficient features such as low-emittance windows, fluorescent light bulbs, sustainable lumber, and solar energy. Many millennials have a desire to help reduce their carbon footprint and will opt for more all-electric homes that come equipped with induction stoves and heat pump dryers that are energy-efficient and will reduce costs.

 

Millennials are looking for convenience

 

Along with the desire to help save the planet, millennials are opting for communities that are closer to everyday necessities like parks, shopping, dining, and even employment to lessen the load of a commute. Many are riding bikes, carpooling, taking trains, buses, and utilizing Uber or Lyft to save funds and the earth.

 

Millennials want more space

 

This generation of adults is starting families and businesses, and entertaining guests. They desire homes with open floor plans and great rooms that will accommodate their growing needs. New homes with spacious and open floor plans are more desirable and allow for more options as life changes. Potential homeowners are looking for houses with options for an in-home office, game rooms, nursery, or even an in-home gym.

 

As more and more millennials begin to dominate the real estate market and express their specific home needs, home builders are making the efforts necessary to accommodate this growing generation with smart home technology and lots of amenities that will keep them coming. Millennials are making much bigger decisions than which Snapchat filter to use. They're making investments that will last a lifetime.

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