In What Ways are Millennials Changing the Housing Market?

There is a considerable income gap among millennials. Most of the millennials who own homes today are wealthy, college-educated individuals with excellent credit who were able to pay off or avoid student loan debt. But black millennials have 52% less wealth than their parents' generation at their age, and millennials without a college degree have 19% less wealth.

Because of income inequality, those who are able to buy a home do so, while a large portion of the workforce continues to rent, further exacerbating income inequality.

The number of companies investing in starter homes is increasing. As a result, millennials now make more money on their first homes than their parents and grandparents. With their technology-savvy approach to home buying, millennials have transformed the industry significantly.

House-hunting with a Technological Focus

Technology plays a central role in home buying for the millennial generation, and this demographic is devoted to their devices. NAR estimates that almost all millennials look online for information on the housing market and how to buy a home.

A millennial's likelihood of using their mobile device to search is nearly twice that of a baby boomer's. Fifty-nine percent of millennials said they would be comfortable making an offer based on a virtual tour, while 39 percent said it would be okay to buy a house online. Zillow's report says over 80% of millennials are interested in viewing three-dimensional virtual tours when searching for a home.

Realtors and Communication

Millennials also communicate differently with Realtors by using technology. Jill Hussar, a broker, said that most communication is done by text message. According to Hussar, text messages are used more frequently to request appointments and ask questions than telephone calls, which are typically for more urgent matters. Among the communication channels, texting is the most direct and immediate.

90% of agents communicate via text and 94% via email as a result of this demand for electronic communication. An additional 34% utilize instant messaging to communicate with clients.

How agents list homes have also been impacted by digital technology. Millennials have led agents to introduce video-based features instead of traditional pictures, according to Hussar. With video, agents can help potential buyers, and in particular, millennials, gain a better understanding of the property, communication, and location.

Houses near Work that are Affordable

When it comes to finding housing near their work location, millennials are the most likely to pay attention. Commuting costs were very important to 44% of respondents, while 74% said having easy access to their job was a must when choosing a neighborhood, while 58% said affordability was very important.

The majority of millennial homebuyers—47%—choose suburbs over big cities and rural communities.

Increased Incomes will have an Impact

Millennials' desire for better housing is partially due to their delayed entry into the market. Since they have been waiting for a home for so long, they now want to settle down somewhere they can remain for quite a while. College-educated millennials are also finally able to make a living: their median earnings were $56,000 in 2018, which is approximately the same as that of Generation X in 2001. 

Hardworking millennials seem increasingly unwilling to do without the material possessions associated with self-validating goals such as vacations, cars, and homes. Among the things, that matter is expensive appliances and gadgets, landscaping, furnishings, and finishes.

Wrapping Up

As this next generation of homebuyers enters the fray, they may bring more changes to the housing market. The key to keeping that evolution in perspective is to focus on the positive contributions made by millennials. The adoption of technology, for instance, might streamline and streamline the homebuying process. By settling in the suburbs, more millennials could help mitigate the effect of rising housing prices in cities.

The millennial generation grew up with social media, so they expect instant gratification in the housing market. Even before the current supply chain challenges, they didn't appear to want to tackle renovations. They preferred to move in right away. Because of this reason, older properties tend to sell for less, have a smaller market value, and take longer to sell. Earlier generations were more inclined to renovate older houses and looked at unstaged and unprofessionally photographed homes with an eye for potential.

Timberstone Homes - Offering New Homes for Sale in Lafayette

Ready to begin the journey to become a homeowner? Reach out to Timberstone Homes if you're a Millennial looking to buy your first home. We are experienced realtors and builders in Lafayette, Indiana who will help you find your dream home. The entire process can seem quite daunting for a first-timer, so to ensure you get the perfect home for your needs, our team provides support throughout the process. Visit our website to learn more!