Tired of the Millennial stereotypes? Us too! In the real estate game, Millennials are not only winning, they are way ahead of the pack! Here are the latest trends in Millennial home buying, but feel free to start your own—think outside of the house!
Are you a first-time home buyer?
Approximately 52% of Millennials who are buying homes are first-time home buyers, and damn proud of it.
A large majority of millennials were renting until they whipped out their Texas Instruments and realized the massive loss they are experiencing through equity. What even is equity anyway? It’s the value of your home minus what you owe on it. For example, after just two years of owning a home, we have had multiple clients who have sold their home for reasons of either upgrading or relocating, and have made over $30,000.
By buying your first home, you can enjoy the benefits of ownership and tax incentives while also building equity for similar amounts (or less in some cases) than you were paying each month in rent previously.
P.S. worried about a down payment? Never fear! There are multiple programs—The American Dream Program, Grants for Teachers, Service Employees, etc.—that can have you at the closing table with $0 DOWN. Legit, no lie!
Check out the graph below to see just how much money you’re forking over to your landlord by choosing not to buy:
Say “I do” and grab yourself a home
The majority of home-buying Millennials are buying single-family homes versus condos.
Most Millennials are buying single-family homes versus condos partially because over 50% of the people in that demographic are either married or in long-term relationships. We work with many first-time home buyers and are not surprised that these smarties want to cash in on those tax benefits and double income. But hey, no one here is hating on a condo—we all know it’s a great way to have all the perks of home ownership sans the exterior maintenance.
Because I said so.. That’s why!
The majority of millennials are buying homes simply because they want to.
While some people made the decision to buy because they wanted to own a larger home, be closer to friends and family, or were moving due to job relocation, more and more Millennials are purchasing simply because they wanted a home of their own. In fact, the general desire to own a home was listed as the reason for buying a home by as many Millennials as all the aforementioned reasons combined! So, live your best life, get yourself into a home, and feel proud!
Beyond the Outerbelt
Millennials are livin’ in the ‘burbs and lovin’ it.
One big trend among Millennial home buyers is that they were buying homes in the suburbs. It could be the need to have easy access to the local Target, but even more so, it’s the resale value. Buying a home in the ‘burbs means you eventually get to sell one there, and suburban resale value is looking significantly hot these days. This wasn’t restricted only to Millennials, either; 51% of all homes purchased in 2018 were located in suburban areas or subdivisions.
Not digging the new builds
A vast majority of the homes Millennials purchased have been previously owned.
Though there have been a number of new subdivisions built around the country in recent years, only a small percentage of Millennials are buying into them. Is it the mature trees, the character, the lack of construction? We’re not sure. But regardless, the buying preference is geared towards wisdom over a youth trend in the housing market.
Just a short Uber drive away
Millennials prioritize location over cost when it comes to home buying.
There are a number of factors that affected the purchasing decisions of Millennials. The presence of public transit or proximity to work was one major factor, with many Millennials trying to minimize fuel costs. Heating and cooling efficiency also played an important role. In general, Millennials were more willing to compromise on price than on a home’s condition, but only around 20 percent were willing to compromise on the distance of their new home from work.
After Googling, what’s your next step?
Millennials lean on real estate agents for home buying information.
By far, the majority of Millennials started their home search by looking online to try and find properties for sale and discover their vibe. Around 15% spent even more time online than that, learning the ins and outs of the home buying process before even starting to look at properties. Beyond online sources, Millennials trusted real estate agents the most for information about homes for sale. The entire process took about 10 weeks on average before finding the home they wanted to buy, though a real estate agent was involved for the last seven or so weeks of the search.
Jenn and Lauren of the LKW Home Team are here to walk you through the home buying process. We handle the hard questions, negotiate on your behalf, advise you on your purchase, offer complimentary home buyers consultations, and aim to ensure a safe and successful transaction. Did you know as a purchaser, real estate agents are completely FREE to you? That’s right! So, the moment you are thinking of starting that Google search, reach out to us instead. In the extremely competitive Columbus market, we will get you home results the second they hit the market, and meet you there asap!
Thinking of Real Estate Investing or even becoming a Real Estate Agent?The LKW Home Team would be ecstatic to get your Real Estate profile started or expanded, and help you get your Real Estate Career into gear, so reach out to Jenn Kessel-White and Lauren Lucas at [email protected] or text /call (614) 321-9262