INSURANCE AGENCY NETWORK Blog
Over the past decade, Americans have seen a steady economic recovery. As a result of this, there has been an influx of millennials in their late 20s and early 30s leading the charge with home ownerships. The younger millennial generation more often rent as they begin their careers, but the older ones have had the time to pay off their student loans and are now investing in their own homes.
A Generational Shift in Home Buying
With millennials finally beginning to buy residential homes, their approach has been much different from previous home buyers. Because of this surge, the housing market is starting to adapt to their home buying trends increasingly.
House-Hunting has become Tech-Oriented
A 2017 report from the National Association of Realtors found that 99%of millennials get information about home buying and the housing market online. They are also almost twice as likely to use their smartphones or tablets than the older baby boomers to find the place they want, and 58% successfully find their homes through online transactions.
Different Communication with Realtors
The majority of millennials prefer communications with agents via text messages, emails, and instant messaging apps. Unlike before, their generation usually reserves phone calls only for urgent or pressing concerns. Tech-savvy millennials are also introducing agents and brokers to new features like live streaming and video recordings for house listings, aside from the traditional photographs.
Demand for Deluxe Homes and Suburban Housing
Millennials desire more deluxe houses, almost always skipping starter homes, due to the delay in entering the housing market. In a survey in 2018, one-third of millennials who bought a home that year paid above $300,000, compared to the 150-250 grand most buyers spend on their first homes. Also, almost half of millennials prefer to live in the suburbs, probably due to the high housing prices they experienced while renting in urban areas.
Millennials are actively changing home buying, and as more of this generation enters the market, more changes may be expected. Nevertheless, increasingly relying on technology and moving to the suburbs could result in a more efficient home buying process and balance the rising prices in urban areas.
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