Understanding the Millennial Home buyer
Millennials have come of age now. They represent the biggest generation in the history of mankind. They now are the biggest group of buyers in America. Most of the first time home buyers in the states are Millennilas(also referred as generation Y) and they are bringing about major changes to the real estate market.
Let us take a look at the common characteristics of this generation and how to better understand them:
- The biggest generation
According to some recent reports by The US Census Bureau reports there are currently about 83.1 million Millennials, which represents over one fourth of the nation’s population. Their number has surpassed the number of Baby Boomers.
- Diversity
The same US Census Bureau report indicates that around 44.2% of the generation Y identify themselves as minorities. This indicates that coming from a diverse background might alter their choice of real estate. This also makes them more open to change and accepting of a diverse environment.
- Tussle with bad debt
With low income to expense ratio, this generation is mostly found having bad debt to no fault of their own. With medical facilities becoming expensive and Education forcing them to borrow debt, their back in burdened with all the expense to meet. While this generation is still young, many have entered the workforce during a time of recession. The median income for Millennials in the United States who have year-round, full-time employment is $33,883. This tells that mortgaging house to them might seem tougher at the beginning after seeing their credit scores.
- Millennials are educated
Almost one third of older Millennials are educated and the younger ones are not falling behind (Pew Research Center). Education adds class to the choice of real estate one would want to buy.
- Millennials are tech savvy
Almost every member of this generation possesses a smart phone. They are the ones who help built giants like apple and Samsung by becoming loyal customers. 65% of Millennial population say that losing their phone or computer would have a greater negative impact
Millennial home buying trends and preferences
Millennial are a hard working generation. They are booming with talent and education yet they are burdened with debt. Apart from their debt situation a millennial home buyer has high aspirations. They are efficient in every possible way. They like things personalized and despise waste of space. They do not look for fancy ornaments or lavish designs. People of this generation are clean and energy efficient and hate being wasteful; They also expect to be able to communicate with you via text, email, and social media.
So, on the whole, the generation Y represents the future of this country. They are significantly different from the generations of the past. The Millennials are racially diverse, less likely to be married, more educated and more likely to be in enormous debt. It is a must for a real estate agent to know about the needs and wants of this generation.