Real Estate Markets: Millennials Emerge as Large Homebuyer Demographic
Anyone that is trying to sell a home knows that it can be difficult to attract the right type of buyer. Some locations better serve certain demographics, and this means that some buyers will have a real reason to pay more for the property.
Home sellers that are using the internet to maximize exposure for the listing will need to consider some of the demographic differences that are seen in certain groups and geographical locations. The internet can be a great place to accomplish this, and one of the groups potential home sellers have started to watch more closely in the millennial age demographic.
Growing Numbers of Millennial Homebuyers
As millennials become old enough to begin purchasing their own homes, we have seen some interesting differences in the ways generational groups are diversifying:
Here, we can see that population increases mean that millennials have captured a larger percentage of the potential market share. Generation X, the Baby Boomers, and the Millennial generation are all roughly equal in terms of the total number of homes purchased. This is because many younger consumers still live with their parents, and are more likely to need a dwelling of their own.
About 1 in 3 millennials still live with their parents, as student loan debt and a job economy that is often weak has discouraged spending. The good news is that the economy is that the economy has improved in ways that has made it easier for all age groups to save money and invest for growth.
Since this is still an up-and-coming change in the real estate markets, it is important for home sellers and realtors to have an understanding of which homes will be in the greatest demand. Research shows us that single-family homes will continue to be at the highest demand levels for the Baby Boomer generation.
This is not entirely surprising but what might be surprising is the fact that this is also the type of dwelling that will be most in demand for Millennials, as well.
Emerging Trends in Home Purchases
According to the research, one trend that will be changing is the level of demand that is seen for townhouses. The demand for townhouses is expected to rise sharply, and this will actually account for about one-third of all the home purchases that are made by the Millennial generation.
For realtors, this suggests that it may be a good idea to start focusing more on these types of properties as it could mean more sales in the next decade. The explanation for many of these trends comes from the fact that technology has made living quarters more efficient – and less size is needed. For example, cooking that was once done on a large stove can now be accomplished using a microwave (or much smaller stove). This means that all of the extra space that was a requirement previously might now be seen as unnecessary.
All of this information is important – and this is true whether you are a homebuyer or a home seller. Population demographics are constantly shifting and it is critical to have an understanding of where these trends are headed so that we can make the best decisions for our own home buying and home selling needs.
The research shows us that there will be some differences in the ways homes are purchased in the future. The research also tells us that Millennials will have a growing influence in the types of homes that are purchased. This information can be valuable in terms of the ways it allows us to prepare for the future needs of the real estate market in our abilities to reach more potential homebuyers and ensure seamless sales transactions.