For the past few years, millennial homebuyers have had a strong influence and impact on the housing market. They will continue to do so well into 2021 as they become one of the fastest-growing home buyers segment. With mortgage rates at all-time lows, the transition to remote working, and the desire for more space, more people at a younger age are becoming increasingly motivated to dive into the real estate market.
How Millennials are Shaping the Home Buying Industry
There is motivation to invest in real estate early
Today, this generation is not necessarily waiting to purchase their first home until they get married and have children. Instead, millennials consider buying a home an excellent financial investment.
They care about the digital experience
Millennials grew up in a digital environment and are active researchers. To their benefit, the real estate world has transitioned to be more digitally friendly within the year from having online open houses, 3D walkthroughs, virtual mortgage closings, and much more. Additionally, many people in this generation prefer to work with a company that offers an online mortgage application.
There is more demand for low down payment programs
Saving for a down payment is one of the most common concerns among the younger generation of home buyers because of increasing student debt. Thus, FHA loans are becoming increasingly popular among millennials because these programs allow for smaller down payments.
They have the desire to move to suburban areas
With the growing popularity of remote working, millennials recognize the importance of having a more spacious home. Many people realize that they can get more bang for their buck outside of the central city area. Venturing a few miles outside of the city center can get you more space, greenery, and community amenities. One of the most common things millennials look for today in a home is space for a home office.
They are willing to put in sweat equity
Many millennial homebuyers are more motivated to put in manual labor to make minor home improvements to increase their home’s future value. With online tutorial videos and other resources more accessible than ever, it’s easier to learn new handy skills on your own time.
Overall, millennials have and will continue to impact the real estate market in 2021 substantially!