Millennials (ages 18-29) make up the future’s home-buyer population. As the economy continues to strengthen, it’s important to know where future buying demand is headed. How do these youngsters prioritize real estate investment?
A recently released report by the Demand Institute (“Millenials and Their Homes: Still Seeking the American Dream”) unveiled many myths about these generations and their perception on owning property. Not so glum after all:
- 48% of Millennials plan to switch from renting to owning in the next 4 years
- 75% view home ownership as an important long-term goal
- 73% believe that home ownership is an excellent investment
- 60% plan to purchase in the next 5 years
Here are some other surprising facts about Millennials and what you can expect when they do decide to buy:
- 61% want more space
- 48% believe they will be headed for the suburbs when they purchase
- Within 5 years, 64% are expected to be married and 55% are expected to have children, compared to 30% and 36% respectively.
So what does this all mean? It means that younger people are not far removed from Gen X and Baby Boomers. Millennials won’t be the urban-dwelling, broke, single tech losers everyone thinks they will be in their thirties.
Millennials will still have different values, as is with any generation. The desire of isolation will not be as strong in the future of home searching. Communities that can offer spacious suburban neighborhoods while preserving urban convenience and access to amenities will be the strongest Real Estate Markets in the future.
With easy access to the excitement of SF and still boasting the character of it’s own communities, Marin County will be a Millennial buyer hot spot. Time to think like a savvy investor…