While they may have a different outlook then previous generations, millennial are buying homes in masses.
It was inevitable and now it's here. For the first time there are more millennials buying homes then any other generation, and they show no signs of slowing down. So what is motivating them?
Like many others, they experienced and persevered through the recession. Millennials have the tenacity to push forward, particularly after financial hardship. Now that the recession is behind us the light is shining through the tunnel and enticing more people to participate in investing.
Millennials prefer to invest in real estate over other alternatives. In fact 80% of them believe that real estate is one of the best investment opportunities out there, as confirmed by a chief official at NAR. Even with frequent housing downturns in the marketplace millennials are not afraid to roll the dice and expand their asset portfolio in hopes that such an investment will result in long-term financial stability.
Mindsets have changed and are evolving. While older generations saw home ownership as an experience of a lifetime, younger adults are finding more short term opportunities such a flipping or creating passive income by becoming a landlord. Simply put they are looking at real estate not as a place to live forever but an asset that can be traded, when ripe.
Advancements in technology are quickly be adopted by millennials, organically changing the real estate market. Buyers are finding new ways to hunt down and research/investigate prospective homes. They are remolding the way deals are put together through the use of applications and always-on mobile devices. This is shortening what can sometimes be a lengthy process and simply making home ownership more convenient and thus more attractive.
At the end of the day millennials are the next in line and usually the first to the door. Their motives are strategic and it seems once they get their feet wet they are hooked. That said, not everyone is qualified for a slice of the pie, yet anyway. Millennials biggest setback into home ownership is debt. Only after debt/income ratios are brought into an ideal range can would-be buyers participate. It’s all about education and planning, two things we excel at.
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