With more and more millennials entering the home buying market, it comes as no surprise that this generation is shifting the market. Millennials are currently the largest age group of home buyers with between 36% and 40% of buyers coming from this generation.
The Washington Post has said that the Millennial generation is the most likely to see a home purchase as a good financial investment. This was despite the fact that more than half of Millennials stated they have some type of high student loan debt to pay off.
Most of those in the older sector of millennials (24 to 34) are thinking about starting a family and owning a home. In fact, the National Association of Realtors also found that the average first-time homebuyer age is 32. It would be silly to think the real estate market isn't shifting due to millennial buyers.
Here's how the millennial generation is having an impact on the housing market.
Surban is the Choice for Millennials
While you may be familiar with urban and suburban, surban may be a new term for you. With the percentage of millennial buyers choosing urban areas dropping and many choosing to avoid the suburbs, where are they all going?
The surban areas are the choice for millennials. These areas provide a mix of the urban and suburban feel and features. They tend to be more affordable communities and much more pedestrian-friendly.
In Nashville, first-time millennial buyers are choosing a few specific areas. Hendersonville and Gallatin are two of the most popular places outside of Nashville because of the affordable living.
Millennials Flock to 18-Hour Cities
Another new term you may not be familiar with is the 18-hour city. This is a city with above-average urban population growth and a lower cost of living and doing business. The larger cities, such as Chicago, New York City, Los Angeles, and Boston are known as 24-hour cities.
Nashville is an 18hour city and it's attracting plenty of millennials. Many are headed to Nashville for the diversity, unique city living and the ability to actually afford to buy a house.
Millennials are the first generation to truly seek energy-efficient amenities in their home and in their community. They want to reduce utility bills and help the environment all at the same time. Sustainability matters and many millennials are seeking home with smart features to help reduce energy consumption.
The Home Office is on the Rise
While buying a home with an extra bedroom or bonus room used to be popular today, it's the home office millennials seek. Many run small businesses or freelance, which means this generation of workers spends more time working from home than any other generation.
This has translated into more buyers seeking homes with home offices instead of homes with an extra bedroom. Millennials want to be able to treat their home as a house and a place of business and the home office helps make this possible.
The real estate market is certainly changing and sellers have to be aware of the changes. If you want to attract the largest group of home buyers right now, you need to cater to the millennial buyer. They are looking for specific things in a home and changing the way the real estate market looks.