Buying a house is a dream for the many individuals and for others, it is an important investment. A number of young millennials work hard to turn their dream into a reality. Some of them achieve very early and even before they turn thirty, they are already buying their second home. However, for a majority of them, the reality is quite different and challenging.
Millenials & The Housing Market
Due to the sheer number of millennials, the impact they have on any market is tremendous. Whether it is real estate or the wine industry, young millennials with a lot of disposable income choose real estate as their ideal investment avenue.
Access to the Internet right from the early childhood has turned the millennials into extensive researchers on everything. They research and learn a lot more about each and everything they want to buy as compared to the previous generations. They want everything perfect and don’t want to leave any room for a mistake. That’s why they ask for the advice of realtors.
Millenial homebuyers have to deal with many obstacles like monstrous debt from the student loans. They represent the biggest group of homebuyers. Demographics alone are the number one factor why millennials have such a huge impact on the housing market.
New Type of Home Buyers
A large number of young millennials put their career, mortgage, and investments before marriage. Saving for the down payment is not easy with the wages just enough to pay the bills and clearing the student loan debt. Millenials are delaying marriage and children for over a decade and understand how expensive it is to raise children.
Millenials want to buy houses for utility and don’t intend to live in the house forever. Instead of spending a major portion of their income into house rent, they are happier paying installments for their house. They look at their house as an investment rather than a dream after which they will live happily forever.
Most of the millennial investors are busy working so they don’t have time to make any updates. They want properties which are ready to move-in. They also prefer to buy a house in walkable neighborhoods. They need updated kitchens, bathrooms, power-saving fixtures like solar panels, fast Internet, etc. They also need houses which are newly built to avoid maintenance troubles.
They don’t want to buy large penthouses and get stuck with the installments for decades. Instead, they are happy investing in condominiums close to their workplace. Many of the millennial investors make such investments to improve their credit score with the banks. Some of the investors also intend to buy a property, improve it and make a profit as they see a huge market for investors who don’t want to invest their time into updating it.
Sellers Need To Cater To Millenials
They are well-informed about their options and take advise of professional wealth advisors. They make a major share of the real-estate market and sellers cannot ignore the buying potential of this generation. It is very important for sellers to prepare their property while keeping the potential buyer’s need in mind, such as,
– Repairs & Upgrades
– Updated Kitchens & Bathrooms
– Energy Efficiency Upgrades
– Smart Home Features
– Modern Living Solutions
Millenials hold enormous buying power and they have a tendency to extensively research each and every option available to them. It makes the market competitive for the sellers as well. Sellers also need to get adapted to a change in dynamics where they have to deal with the buyers first and their parents once the buyer likes the house.
Millenials are changing the face of the housing market with their changing preferences. New homes and updated homes with modern kitchen, bathroom, etc. move much faster than the houses that need updates.
To Sum Up
With the changing social dynamics, career commitments and debt, the face of the real-estate market are getting revamped. Millenials are the dominant force in the real market today and sellers cannot ignore their buying potential.
Millenials are tech-savvy researchers who are well-informed about their choices and make buying decisions only after carefully selecting the best option. They don’t want the house mortgage to last for a long time and they’re happy to buy a house which is close to their workplace. They buy a house as an investment instead of purchasing a place to settle down for life.