Millennials Are Making Their Mark on The Real Estate Industry
Millennials are a unique generation shaking things up in society in many ways. Their views on life and values are causing a ripple effect through many industries since they are so different from earlier generations. Ralph DiBugnara points out one shifting perspective between millennials and previous generations, Motherhood. The center for disease control and prevention released a report recently showing the birthrate dropping to an all-time low in the United States. It also showed the rates of woman between the ages of 40 and 44 having children have doubled.
What does this mean for real estate?
While millennials have continued their dominance as the largest buying group in the market, they are all starting families and getting married later in life so their needs regarding homes have changed. Previous generations were looking for homes that could fit a family, but millennials need smaller spaces since many millennial homebuyers are single or cohabitating with just one other person. and are more financially savvy then previous generations, so they are working on smaller budgets. They are also generation that came to the workforce during a financial crisis, so they are more risk averse.
Because of the millennial’s’ buying habits in combination with Baby Boomers following the trend of downsizing, we are seeing a huge demand for smaller homes which is one sector of the market that is still dealing with an inventory shortage. Because of this shortage, rehab loans are becoming very popular because homes that need a lot of work are the ones not selling very quickly. What this is also causing is a surplus of properties in the high-end luxury market which was the only portion of the market that had a down year in 2017 according to Realtor.com.
Want to learn more about Rehab loans? Check out our Real Estate Shortage Leads to Rising Rehab Trend video or reach out to us!