Millennial Trends in Homeownership
One thing that real estate market watchers knew for sure going into 2019 was that millennials were going to play their largest role yet in the homeownership market. According to Realtor Magazine, homeownership rates are on the rise, and it’s millennials that are boosting the numbers. Why and how is this happening, you might ask? A recent blog post from Remax outlines 4 trends that explain this rise in homeownership rates, which we’ve summarized below.
Today’s millennials know more about real estate than any other previous generation did. This is most likely credited to the presence of the Internet, where many millennials look to find more information about costs, the market, etc. Real estate agents are still valuable to them, however- not everything can be found on the Internet!
2. People are Still Buying
According to the Remax post, “Millennials continue to make up the largest segment of buyers, accounting for 45 percent of mortgages, compared to 17 percent of baby boomers and 37 percent of Generation Xers.” It’s been a trend with this generation to put social goals on hold while they focus on their professional developments and financial situations, including taking the leap to buy a house and take on a mortgage. This trend is also set to continue on for as long as another decade.
3. You Get What You Give
Sweat equity, or an interest or increased value in a property earned from labor toward upkeep or restoration, is becoming quite popular among the millennial generation. As the Remax blog post pointed out, millennials grew up with HGTV and the array of renovation and transformational shows that they produced. This means that at an early age, millennials already understood the value of putting work into a home. “This is good news as interest rates rise and buyers should be prepared to settle for homes in need of TLC,” the Remax post says.
4. Social Media’s Impact
Social media and the Internet opened up a whole new world to this generation, where access to reviews on different real estate agents and contractors is at their fingertips. This digital age that we’re in also allows sellers to show their homes on apps like Zillow, where photos and video walkthroughs are highly valued by buyers.