REPOST: What the Real Estate Industry Needs to Know about Millennials
According to the U.S. Census Bureau, millennials now number 83.1M – more than one quarter of the nation’s population. As the largest demographic cohort in America, millennials are a powerful buying force and brands are vying for their attention. They are the largest source of new demand for rental housing and represent 32 percent of the U.S. home buying market and 68 percent of first-time homebuyers . As such, their preferences will greatly impact the economy and shape the residential real estate market, including how homes are built and financed.
While millennials are key to the future of housing demand, the Great Recession has left them at a financial disadvantage and they are delaying key life milestones, such as homeownership, marriage and having children. Economic challenges, such as rising student loan debts, stagnant wages, a competitive job market, rising rents, and high price-to-income ratios, have made it difficult for millennials to save and/or qualify for a home. Despite their economic and financial challenges, Millennials are optimistic about their future and aspire to own a home – 84 percent consider a home purchase a good financial investment.
As digital natives, millennials are the most tech-savvy generation that advertisers have targeted. They demand instant access to product information, price comparisons, and reviews and are turning to trusted brands that offer high quality, transparency, and convenience at the lowest cost. They are also adopting new approaches to finding a real estate agent, searching for their dream home, and home finance.
The infographic below shares various characteristics of millennials and what they value in the homebuying and selling experience. It also highlights their untapped demand for homeownership, which brings great opportunities for brands and those in real estate that are strategically positioned to serve them.