Dallas, Texas – Millennials are the largest generation since the Baby Boomers, and it turns out they have a taste for Texas. Michael Miller, CMO at 5Arch Group, broke down the ramifications of an inbound Millennial population on the Texas housing market and Texas real estate investors in a market analysis presented at the annual Think Realty National Conference & Expo in Dallas, Texas, on February 24, 2018.
“Not only are Millennials the largest generation, post-Boomer, but they are also the largest span of age,” he noted. “The ages 27 to 30 are the largest concentration, and a lot of them are just now entering the market. They’ve moved out of their homes, they have stable relationships or are newly married, and they’re moving into your rental properties.”
Miller advised investors targeting Millennial renters to “think about their mindset.” He observed, “They like mixed-use environments, smaller, community-based developments. That’s why Dallas has thrived in its small-community development.”
After analyzing the Millennial mindset, Miller took on the real estate market. “Foreclosures are on the rise,” he warned. “To me, we’re coming out of 2014 from three strong years. The inventory is still settling. I never like foreclosure rates moving up, but if you start looking at high foreclosure concentrations, you start seeing where opportunities might exist from a foreclosure standpoint,” he said. However, Miller added, investors in the Texas market need to have a clear game plan for the long-term. “Think about what you will do in five years: Will you flip the product after that? Do you plan to hold it longer?”
Miller, whose company provides reliable working capital to real estate investors, emphasized that the game plan should directly affect an investor’s borrowing plan as well. He detailed several options, including highly specific information about what questions to ask yourself and your lender before borrowing, based on different investment strategies.
“We’ve laid the landscape. We know where the opportunities are. It’s time to know the differences between lenders,” he said.
Read more conference coverage of the Think Realty National Conference & Expo in Dallas, Texas, and get information about the next Think Realty event here.