How Millennials Have Changed The Housing Market
If you’ve followed real estate trends over the past year, you’ve seen some benefits – declining interest rates and rising housing prices – but also some negatives – a lack of affordable housing and a decline in some commercial transactions. Real estate in 2020 is projected to be rewarding for investors, and the market is likely to see overall growth and benefits from buyers and sellers alike. Keep on reading to find out how millennials have changed the housing market.
If you are considering investing in real estate, it is important to tailor your strategies to the influx of millennials saturating the housing market. Taylor Equities and other resources can provide valuable insight into the housing market.
How Millennials Have Changed The Housing Market: Millennials And The Economic Recovery
The housing market has come a long way from its downfall in 2008. Over the past decade, real estate has slowly grown creating the booming market you see today. Millennials have been one of the groups most positively impacted by the economic growth— they’ve been able to pay off their student debt and have entered into jobs with six-figure salaries. In 2020, millennials are the largest players in the housing market, and it is important for landlords and sellers to understand their unique needs.
Millennials: A Closer Look At Demographics
Millennials are individuals born between 1981 and 1997, their ages range from the early 20s to late 30s. In 2020, a large portion of millennials will be reaching big milestones. They are turning 30, building families, and advancing their career growth. Of course, these milestones are looking quite different for this generation. Millennials tend to marry late, after 30, and they tend to have children even later, around 35. Due to the socio-political context of their time, millennials are a lot less likely to own property due to rising economic struggles. Unfortunately, this generation is well-acquainted with debt, such as student debt. For this reason alone, most millennials will rent housing, rather than purchase. These milestones subtly influence the housing market; many millennials are looking to buy or rent their first properties.
Millennials have become the largest sector of the housing market; therefore, landlords and property investors must consider the most effective ways to target their demographic. Resources such as Steven Taylor, Taylor Equities are great ways to figure out how to reach the millennial population.
Put Your Listing Online
Millennials grew up using the internet and want to explore the housing market in a tech-savvy way. In 2019, 98% of Millennials looked for homes on the internet and more than 80% of them found their home or apartment on their cellphones. If you want to reach the most active players in the housing market, your listing needs to be on the internet. Additionally, it is important to invest in high-quality photos and video footage.
Emphasize Location Perks Over Square Footage
While the baby boomers sought after the biggest homes their wallets could afford, millennials are more interested in quality over quantity. While most millennials don’t want to live in a box, they will if its in a prime location. Most millennials are willing to compromise square footage for a good location or valuable features. When marketing your listing to millennials it is important to emphasize a fabulous location and perks. For example, garage storage or an outdoor patio, over the size of the property.
Millennials are on the housing market, and they’re here to stay. The influx of this new generation to the housing market has had an impact on the best way to market a property. To stay competitive in the current landscape, landlords and property owners must adapt their selling strategies to meet the preferences of millennials.
As you can see, even though economically, millennials are a very unfortunate generation, there are still some lucky ones who will buy property. In order to appeal to them, you should talk more about the perks of the location. Very important are the nearby relevant spots. Schools, cafes, malls are all far more important to have nearby. Millennials will prefer living closer to these locations than having a larger house farther away.
