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Millennial Home Buyers Overcoming Obstacles

MILLENNIAL HOME BUYERS OVERCOMING OBSTACLES
 November 9, 2021 |  Inspection Tips, Business Tips |  inspection industry, business growth, news

By Adam Kiesel, NPI, Inc.'s Digital Marketing Assistant

This past year’s housing market can be best compared to a high-octane car race. Short listing times along with people itching to go from renter to owner made for a hot seller’s market. Millennials were one of the major players, throwing their hats into the buyer’s ring and quickly snatching up homes. As the markets begin to slow down and level off, millennials are trying to keep their footing and overcome some of the hurdles they’ve faced.

Don’t Look at the Label
Millennials can often times be judged simply because of their age. They may be written off as too young or too inexperienced to accurately navigate the housing market. The reality is that they’re one of the more informed buyer groups. Millennials make up nearly 40 percent of the homebuying market, meaning they’re not going away, they’re only growing in number. In fact, most older millennials are repeat buyers and aren’t uninformed about the process. While it’s easy to assume, doing so could lead you down the wrong path when it comes to serving this group.

What They’re Buying
Like every buying group before them, millennials have their own wants and needs when it comes to homes. One of their top requirements for a home is that it doesn't have a large carbon footprint. Close to 80 percent of millennials take into account how green a home is, and many are willing to pay more to get certain features. Just as important as what this age group is buying is where they’re looking. The younger half want to be next to urban centers with restaurants, shopping centers, and event venues. They also want a short commute to work, another tie-in to being more environmentally conscious.

How They’re Buying
Another common misconception about millennials is that they don’t have a way to pay for a home. While they may not have wheelbarrows of cash, they tend to have fairly good saving habits. Last year, millennials saved around 10 percent of their income, just behind Gen-Xers and ahead of Baby Boomers. Second home millennials use the majority of their sales proceeds towards their next home, along with their current savings. For first-time buyers, they normally take out additional loans or rely on family assistance.

What’s Stopping Them
While millennials make up the fastest growing sector of home buyers, it hasn’t been without a few hurdles in their way. The bidding rollercoaster of last year made it difficult for even the most money-savvy millennials to snatch up a home. Lower interest rates helped draw them out, but buyers with more expendable cash, such as Baby Boomers, beat them out for sales. Millennials also are one of the groups with the highest student loan debt. That means they have to tighten their belt and look at more affordable housing options.

Don’t Count Them Out
Baby Boomers did seem to have the upperhand on millennials in terms of buying power, but that lead is gradually closing. As the market starts to level off, it opens the door for them to compete with other age groups for higher-quality homes. Flexible loans are offering millennials more options to pay without breaking the bank. Even the internet is giving millennials a buying boost. Having so much information on markets, economic trends, home listings, and agent contacts at their fingertips means they make quicker, better-informed decisions. So while they’ve hit a few roadblocks, millennials won't be leaving the market any time soon.

Interested in starting your own home inspection franchise with NPI? Request a free information packet here!

 

About the Author
Adam Kiesel, Digital Marketing Assistant
Adam's responsibilities on the NPI, Inc. Marketing Team include content creation for our websites, blogs and social media accounts. He also works on informational items to be sent to current and prospective franchisees. Adam joined the staff at NPI in 2020.


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