The tide is shifting away from baby boomers as the major player in the real estate market. Millennials are a growing force in buying, renting, or investing in real estate. If you have property to sell or rent, understanding this shifting market is essential.
A mountain of research has been conducted in trying to understand the consumer habits, needs and interests of the millennial generation Here are the key takeaways related to the real estate industry:
- At 42%, older millennials now comprise the largest group of homebuyers. (Buyers are defined as people who moved into a home that was purchased within the last year).
- However, at 14%, millennials still fall behind baby boomers when it comes to home ownership. (A homeowner is defined as someone who has owned and lived in their home for more than one year).
- At 50%, millennials comprise the largest segment of renters
- The median age of today’s renter is 32, and most (60%) make less than $50,000
- Key drivers in the millennial housing market:
- Room to grow
- Neighborhood attributes
(data from Zillow.com)
According to the U.S. Census Bureau, there are 75.4 million millennials, surpassing baby boomers as the largest generation alive. However, with 57 being the median age of today’s homeowner, millennials still fall behind boomers when it comes to homeownership.
The New “Typical American Homeowner”
Zillow pointed out that the millennial segment of the population, roughly aged 20 to 36, faces several challenges when it comes to entering the housing market. Rising interest rates, low inventory and escalating home prices “leaves few options for millennials, a huge generation just entering the market that genuinely wants to become homeowners, but can’t find anything to buy.”
However, that doesn’t mean the largest generation in our history isn’t motivated to buy. Realtor.com predicts millennials will account of 43% of mortgages this year.
At a median age of 32, millennials are also the major group driving rental demand. Destination Maui Realty property managers understand this demographic, and helps homeowners market properties that meet their needs. For example, we share information about nearby schools and amenities such as parks and transportation- neighborhood attributes millennials are interested in. Then, when it comes time to sell an investment property, who better than those who have been working for decades with your target demographic?
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