Thanks to crushing student debt, stagnate wages and the 2008 housing market crash, Millennials have been wary to jump into homeownership.
But as Millennials get older, their desire and plans to own homes remain constant, according to a recent report from Clever Real Estate. About 84 percent of Millennials believe that buying a home remains a core component of the American Dream, reported Clever Real Estate, a nationwide referral service.
In support of such findings, a 2018 Bank of America survey found that Millennials, also known as Gen Y, prioritize homeownership over other major life events. 72 percent of Gen Y folks prioritize homeownership, as compared to 50 percent that aspires for marriage and 44 percent that want children.
“Millennials are already well on their way to becoming the driving force in the residential real estate market, a role they’ll likely continue to play for decades to come,” said St. Louis-based Clever Real Estate.
Emergent data seems to show the shifting mindset among those in Gen Y, who have posted a sizeable increase in homeownership in recent years. Although U.S. Census Bureau data shows that ownership rates remain highest among householders ages 65 and over at 78.6 percent, buyers that are 37-years-old and younger make up the largest share of home buyers at 36 percent.
Though they’ll likely become an economic force in real estate like past generations, the age group’s homebuying expectations are quite different, according to Clever Real Estate.
Here are three trends to be aware of with Millennial buyers.
Most are first-time buyers
About 79 percent of Millennials are first-time homebuyers, which means they’re turning to help wherever they can find it. About 82 percent of homebuying Millennials use online tools and real estate agents to guide them through the process. Millennials value safe neighborhoods and good schools over walkability and short commutes, according to the report.
They’ll get their hands dirty
In general, most in Gen Y are willing to roll up their sleeves and put in work on fixing a home. About 67 percent of Millennials homebuyers say they’re willing to buy a fixer-upper home that’s in need of major repairs. Saving enough money for a down payment is the biggest barrier to entry for Millennials. As such they’re willing to put in work themselves if they believe a property has enough upside.
They use their phones to find homes
About 63 percent of Millennials respondents to the Cleve survey said that their phone was their primary research tool for finding their homes. As such, make sure that your websites are optimized for a mobile search experience that Millennials have come to expect. Zillow is the most popular research tool among Gen Y, according to Clever.
Here are some graphics further detailing Millennial homebuying preferences, according to Clever.
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