There’s a new generation that’s been ruling the housing market and it’s no longer the Baby Boomers. According to Forbes, about half of home buyers are under the age of 36 and about half of sellers are under the age of 41. You guessed it, Millennials are moving in.
There has been a stigma that millennials are against home buying and ownership. However, that’s not how I’m seeing it play out.
The last 10 years we were blaming millennials for a generation of entitlement. You may have heard of the $30,000 millionaires - you know, the ones who make their first paycheck and spend It on a luxury car lease. Well the pandemic may have humbled this group.
Millennials are turning a corner. Being home and tied down to their surroundings for the last two years in the midst of the pandemic showed that individuals need to invest in their living spaces, they want to get married, and they want ownership in something bigger than a $1,700/month studio apartment. But how are Millennials suddenly able to afford to purchase a home? And why are they leading the homebuyers pack? See below for the three reasons millennials are owning the market.
1. They’re heading back to their roots.
Many millennials fled to the big cities after college graduation; New York, LA, Charlotte, Miami, etc., and it’s time to come home and settle down. The age group has experienced life outside the suburbs and they are ready to move into homes where they can start a family, create equity, and be closer to their parents.
2. Moving into the Baby Boomers’ abodes
Nearly 10,000 Baby Boomers are turning 65 years old everyday. Which in turn means retirement, downsizing, moving to a condo in the Bahamas - whatever it may be. Millennials now have the opportunity to purchase these generational homes and ditch their leases.
3. Rises Rent + Parental Guidance
Rental prices are continuing to climb right along with home prices. Many parents of the millennial generation see this staggering change of pace and want to lend a helping hand (cough cough - a down payment on a home) to their beloved children for them to own property, much like they did back in the day. 25% of homebuyers ages 23-31 received down payment help from their family, considering it an investment gift.