Fact vs. Fiction: Understanding Millennial Home Buyers

5 Millennial Home Buying MythsMillennials are making their mark on seemingly every industry, and real estate is no exception. As more and more people from this motivated generation begin to invest in property across the country, it’s important to understand the truth about these home buyers.

Millennial Myth #1: Millennials Can’t Afford to Buy Homes

Fact: While many Millennials are under the impression that they are not able to secure the financing to purchase a home, the fact of the matter is that most Millennials are in a great position to purchase their first property. Student loan debt is no longer preventing Millennials from securing a mortgage, and the average income for Millennials over the age of 25 is $38,000 per year. Millennials who are interested in purchasing a home should partner with an experienced real estate agent who can help them identify resources that are available to assist during the home buying process.

Millennial Myth #2: Millennials are Waiting Longer to Purchase Their First Home

Fact: In reality, the average age of first home purchase has not changed in the last four decades. During the 1970s, the average first-time home buyer was just over 30 years old. Today, the average first-time home buyer is 31 years old. While it may seem like Millennials are delaying home ownership, the fact is that nearly two-thirds of Millennials have not even reached the age of the average first-time home buyer. It is expected that Millennial home ownership will increase significantly in the coming years.

Millennial Myth #3: Millennials are Not Interested in Home Ownership

Fact: While Millennials are often thought of as a selfish generation that is more interested in traveling, partying and socializing with friends, the truth is that most Millennials are interested in investing, purchasing property and owning real estate. The results of a recent survey showed that Millennials believe that investing in real estate is beneficial for their financial portfolio as well as important for enjoying the lifestyle that they prefer. Each year, more and more Millennials begin the process of working with a real estate agent to buy a home.

Millennial Myth #4: Millennials Only Care About What’s Inside the House

Fact: Millennials are interested in the amenities that can be found inside a property that they are considering, but they also care just as much about the surrounding neighborhood and outlying community. Millennials want more than a luxurious house, they also want to live in a neighborhood where they can connect with their neighbors and become involved in local organizations. In fact, many Millennials are willing to purchase a smaller Brooklyn Park home, as long as it is within a development that offers common areas and community amenities.

Millennial Myth #5: Millennials are Vastly Different than Older Generations

Fact: Older generations such as the Baby Boomers and Generation X are constantly looking for ways to differentiate themselves from Millennials, but the reality is that these groups have more in common than one might expect. Like the Baby Boomers, Millennials are interested in homes that offer community amenities, such as casual gathering spaces and walking trails. Millennials have a desire to be a part of the community in which they reside, which is a growing trend across all real estate market segments.

Millennials who are looking to purchase or sell a home will want to work with a qualified real estate agent who understands the needs and wants of their generation. To find out more about Millennial home buying trends, contact our real estate team today.

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