Will Your Home Be Purchased by a Millennial?
Millennials are history’s largest generation. Ninety million people make up this group, also known as Generation Y, or the population born between 1977 and 1995. This isn’t a strict date range; some would consider Millennials to be those born between 1980 and 1995.
Regardless of exact dates, Millennials are those who have had access to the internet and technology their whole lives and don’t know what life is like without it. Connecting with others, accessing information, getting driving directions, listening to music, and shopping are all done with the aid of technology. To most Millennials, an individualized experience allowed by technology is a given in life.
Who Are the Home Buying Millennials?
Millennials approach home-buying differently than the generations before them did. They don’t rush into the decision to buy a home, and when they do buy, they tend to start with a smaller purchase with the goal of buying bigger later. They understand that relocation is a common aspect of the job market today, and so they generally only expect to stay in one home for about ten years.
The Great Recession of the 2000s affected this generation as they observed the losses their parents and relatives suffered, like bankrupt businesses and foreclosed homes. Many put off marriage or having children due to a lack of available jobs or too much student loan debt. Referred to as the “boomerang generation,” some have even needed to move back in with their parents.
This impact of the Great Recession led to Millennials being more careful to spend money and slower to purchase homes. They desire to own a home but look at ownership as security, rather than as a symbol of status. 86 percent of Millennials would say that owning is a more affordable option than renting, and better use of their budget.