Who are they?
Anyone born between: 1981-1996
They make up the largest portion of homebuyers at 34%
What do they want?
Millennial’s want different things than the generations that came before them. Many of them watched their parents and grandparents lose most or all of their possessions in the great recession and have decided to value experiences over possessions.
This means that they do not need large homes filled with excess furniture and decorations to be happy. They would rather have a smaller home that is less expensive and easier to maintain. An open floor plan for entertaining guests is a must have for them. While they love to watch HGTV, they typically do not want a fixer upper, because they would rather invest their time and money into other things. So they look for turnkey homes with redone kitchens and bathrooms. The appearance of luxury is more important than luxury itself.
Where do they want it?
They prefer to live in urban and suburban areas where they are close to as many activities and opportunities to experience life with those closest to them. Many Millennial’s would rather live in a lower quality home if it means living in a location that has more to offer.
What’s standing in their way?
A large amount of Millennial’s have accumulated tens of thousands of dollars in debt from college and have struggled to find jobs. This has resulted in many Millennial’s getting married and having kids later than previous generations, which has pushed back the need to purchase a home as well.
What should they do?
Millennial’s who want to buy a home in the near future should start by taking a few steps in the right direction:
1) Cut down your debt as much as possible
2) Reign in your expenses and get rid of non-essential spending
3) Start setting money aside for a down payment
4) Find out from a loan officer how much of a loan you can get approved for
5) Find a real estate agent with experience to get you the best home for your budget
The home buying process can be scary and stressful, especially for first time buyers. So that is why it is extremely important to do research ahead of time and make sure that you are ready to buy and know what you want to buy.