It seems that there is a lot of talk about millennials these days. As time moves along, the generation that was once living at home and spending their parent’s money is now growing up and moving out. Those in the millennial category now have their own jobs, their own kids, and their own goals to achieve. For many, one of those goals is owning a home.
There is a perception in some circles that millennials are only interested in renting apartments and condos, rather than buying single-family homes. However, the numbers just don’t bear that out. Sure, some millennials will go that route, but plenty want a place they can call their own. As more and more in this demographic decide to own instead of rent, the real estate market will surely feel the effects.
It is quite common for both partners in a millennial relationship to have their own careers. That means, with two incomes to consider, these millennials often have impressive buying power when they get ready to purchase a home. With that said, saving for a down payment has proven to be a challenge for many in this generation, so that is a hurdle which needs to be overcome, especially in big cities with pricey real estate.
It is not only millennials who want to purchase and live in a home that need to be considered here. Additionally, there are those who are in the real estate market as a business, using fix and flip loans in an effort to make a profit. This often means buying a property which is in less-than-ideal condition, only to fix it up and record a significant profit. These kinds of buyers should not be overlooked when thinking about the market as a whole.
There is another generation to think about here while millennials are moving out and buying places of their own. We are talking about the parents of these millennials. With the house now free of any children, many in this older generation own more home than they actually need. Whether they want to downsize or just move somewhere new, a large population of those who are nearing retirement may be on the move as well. So, in the end, the movement of the millennial generation away from mom and dad and into their own properties is going to have a far-reaching effect real estate prices and demand.