Millennials are on the up and up. Many adults from the older generations have their mouths full when you talk about millennials. Some may opine that this younger generation is lazy and feeling entitled. And that they aren’t focused and goal-driven as they should be. But when it comes to driving the real estate market, you’d have to give it to them. Millennials are moving the market more than any portion of the demographics.
It’s interesting how millennials have used what they have to their advantage. Many older generations may look at millennials to a fault – such as their over-reliance on technology. But these digital natives are hogging the market now. More than that, they are starting a revolution in the real estate world. Knowing what they are buying can be a great way to tap into this growing market.
Homes in Small Cities
We all know that getting a home isn’t child’s play. First up, you’re not looking at shedding a few dollars, rather real estate will cost you. Perhaps this is a move for more quality living. But this has been the trend for a while now.
One thing’s certain though, the coronavirus has reinforced such a pattern. Millennials may have seen the rationale behind getting into bigger much-cheaper spaces away from the big cities. But COVID-19 has further cemented this notion, showing that the denser the city, the riskier it becomes. What may have been considered urban dwelling at its finest, skyscrapers and high-rise living, are now being frowned upon. Moreover, the digital natives are looking at building homes outside the big cities.
Indeed, most of the houses in smaller cities carry a smaller price tag than their big-city counterparts. Even better, mortgage loans carry a lower interest rate the less dense the city is. The big city’s high standard of living comes at a greater price when it comes to interest.
Another good thing is that you have a greater promise of healthy living, less noisy, and less polluted. Added to that, there are many small cities that have improved over the years. And that’s because of millennials purchasing houses in those locations.
That’s why the inventory for homes being sold in small cities are more than those in big cities. And as demand in a place increases there is a change as well. So it’s a matter of how fast you find a small city with houses on sale that isn’t in high demand.
Millennials are digital natives. They breath social media and make the most of today’s technology. It’s hard to separate millennials from tech – perhaps even impossible. So it shouldn’t be a surprise that tech-oriented houses are in high demand by millennials.
Millennials are very specific in what they want. While being away from all the noise of the city is one, it’s not the only trend now.
Also, our digital native generation wants to have homes with smart technology in play. So much that 86% of this younger generation would pay more than the usual for a home that sports smart technology. Smart homes with electronic access, mobile-controlled security, and voice-activated assistants are their fave choice these days.
Land in Rural Areas
Another real estate investment for many millennials is buying lands in rural areas. It seems the younger generations are attracted to fresher air and greater chances of development in the future.
For some, the understanding of climate change prompts the idea. While for others, they understand that in years these places would eventually be developed. And that means bigger profits in the future.
For about two years now, millennials have been interested in vacation houses. Many of them still rent houses, but they also invest in vacation houses. The truth is that getting a house in big cities is way too expensive, not only in terms of initial down payment but also in terms of monthly mortgage payments.
So the better option is renting out a place. That of course is while investing in real estate. It seems a wise business decision. And that speaks to the smarts this young generation is showing. You could say they’re the learned generation.
Also, this means a vacation house is a place you can de-stress your life when you need to. You can take a trip to your vacation home and relax. It sure looks like it’s a win-win situation.
Millennials are truly the drivers of real estate these days. Knowing their investment habits can be a great way to position yourself in their market. And profit handsomely.