Make way for millennials! According to the Dave Ramsey website, in 2019 millennials will lead the way in number of mortgages, accounting for 45% of the market. As the millennial generation reaches adulthood, they are moving into the housing market looking for a place to call home. However, it is not in the (credit nor debit) cards for most to be living in the city like modern TV drama would have you think. Because of historically high student debt, recession, rising real estate costs, and a challenging and stratified job market, ‘frugal’ is the word to live by. So, most millennials are looking into moving into single family suburban homes on the outskirts of
In their quest to save money in their new homes, millennials are keeping an eye out for space with a multiplicity of use and amenities built for efficiency. No longer is it the size that matters, but how it is used. While they desire the life of suburbia, they also want to integrate some elements of urban life such as walk-ability to shopping & dining and open options for transit. Many attribute this millennial propensity toward convenience to the modern technological era: everything is now available at the click of a screen.
Regardless of the why, there is a huge disconnect between the houses which millennials want and the houses which realtors are selling. Part of the issue could be the disconnect in age. According to National Association of Realtors the average age of a realtor today is 57, and home-builders are building homes with Baby boomers and Gen X in mind. Generations before wanted mansions, but a millennials only desire is a comfortable and adaptable kind of space. Pardee Homes interior designer , Bobby Berk, summarizes the shift for millennials : “ I think we grew up around an older generation of excess, and saw what it did to everyone and the economy. It made us more of a less is more generation.”
It’s safe to say that as this new generation grows up, it’s in real estates best interest to grow with it.