January 25th, 2023 5:47 PM by Will Williams - NMLS# 206380
Millennials are finally dominating the housing market and it’s looking good for them.
Millennials are finally making their mark on the housing market. After years of waiting for the right time, this generation is now dominating the market with record-breaking purchases and a unique set of preferences. Millennials are taking advantage of attractive loan options to purchase their dream homes and make smart investments in real estate. With millennials firmly in control, it looks like good times are ahead for this generation when it comes to homeownership.
Millennials are redefining the way we buy homes. With access to online tools, financial advice, and an abundance of information, millennials are buying homes differently than their parents did. They are taking a more long-term and strategic approach to home ownership, focusing on affordability and sustainability of their investment. Millennials are also taking advantage of new technologies such as online mortgage applications in order to make the process move fast and easier. Millennials are increasingly taking advantage of homeownership in other ways, too. Some millennials have bought homes to rent out and others have created “tiny houses” that they plan on renting out once they outgrow the space.
To better understand the process of WHY Millennials are buying homes differently than their parents did, you have to know what they are prioritizing differently. Millennials are prioritizing quality of life. They want to be in a location with a strong sense of community and close access to more working opportunities. Millennials also want to be able to work from home some days and have the option for flexible schedules. This is why they are moving towards living in urban areas. By examining data from Zillow, Realtor, Trulia, Trulia Trends and the Census Bureau's Longitudinal Census Bureau Data on Housing Tenure 1989-2016 shows that the percentage of owner-occupied homes for individuals between the ages of 18 and 24 has increased steadily over time. It is also higher in urban areas. This is opposite of what their parents did in the past. Parents lived outside of major urban cities, moving towards suburbia as they got older and had children. This was seen through the census longitudinal data on housing tenure 1989-2016 which shows that the percentage for individuals aged 55 to 64 living in owner-occupied homes has been decreasing steadily since 2005.
Millennials aren’t just buying home differently. They are living in them differently as well. Millennials are changing the way we think about homeownership. There is a growing trend among themselves to go for smaller yet smarter homes, mostly in cities. People are turning towards imaginative layouts and technology to maximize their living space. As they continue to redefine what it means to buy a home, they are also redefining the way we live in them.
Millennials are viewing buying homes as a form of self-improvement. In the modern era, millennials are increasingly viewing buying a home as an investment in their future. For many, it's a way of pursuing self-improvement and creating long-term financial stability. Millennials understand that it's not only an investment in their financial future, but it can also be an investment in their personal growth and development. A home provides stability, security, and improved quality of life for young adults. It can also help them build credit, increase their net worth, and give them access to new opportunities that wouldn't otherwise be available. They know that investing in a home is the ultimate form of self-improvement for any young adult looking to make an impact on their future.
Millennials have become accustomed to volatile economic conditions and the recent rise in interest rates has been no exception. They have a keen awareness of their financial situation and are more likely to take precautionary steps such as increasing their savings or reducing their debt rather than worrying about potential future rate increases. They clearly recognize that the current rise in interest rates is not a long-term factor to their home loan and are purchasing homes that have decreased in price due to inflation, with the plan to refinance when the market turns once again.
Written by: Darcy Miranda 1/25/2023
www.FirstWashingtonMortgage.com