In the fast-paced market of real estate, the demographic of buyers is not the same as it once was. The generation notorious for not buying homes is now on the rise to take over the home buying market.
Almost a third of 25 to 39-year-olds started shopping for their first home during the pandemic. What was once uncommon is now commonplace. Millennial homeownership has grown significantly, and the need for houses continues to increase as the 25 to 34-year-old population is 9% larger than that of 35 to 44-year-olds.
So what is causing this sudden increase of young homebuyers who were once lured to the bright lights of city living? Join us as we explore some of the reasons for this millennial transition.
Nomads Finally Settling Down Roots
One may ask why the generation known for hopping from one job to the next and from one city to another would start buying homes. While there are many reasons for the shift, some of the top reasons include: saving money, the ease of purchasing real estate, and the need for a change of pace.
Resale & Write-Offs
Millenials work hard for their money tend to be money savvy. From subscription programs to loyalty stars, millennials know how to make their money go further, so they can spend it how they want. One of the biggest reasons for the move away from renting is the expense.
Money spent on housing is either an expense or an investment. The fork in the road determines whether the payments are going towards rent or a mortgage. The younger generation has seen that renting is a zero-sum game. To change their payments into an eventual gain, they have begun to flock to homebuying.
With homes increasing in value in today’s market and write-offs helping to lighten the payment load, it is an easy decision to switch to being a homeowner. Here are some of the main financial benefits of purchasing a home:
- Appreciation in Home Value
- Home Equity
- Profitability of Renting Out Rooms
- Property Tax Write-Offs
- Home Equity Loan Interest Write Off
- Office Expenses Write-Offs
- Home Improvement Write-Offs
Paying a mortgage allows for housing costs to go towards an end goal of owning outright. Whether buying a forever home or as an investment to sell when an opportunity comes along, the numbers are clear; owning is better.
Advances in Real Estate Technology
With the click of a button, information about real estate is more accessible to find than ever before, giving more opportunities to become educated on the homebuying process. The younger generation relies heavily on the internet as it provides an easy and quick way to get the information they need without the hassle of other avenues.
Technological advancements have changed how homebuying is completed. These advancements are exactly what millennials are looking for. Today, virtual home tours, detailed descriptions of houses, and online mortgages are available at the click of a button. Advancements in technology will continue to uplift the homebuying process and give individuals confidence along the way.
Change of Pace
After years of fast-paced city life, Millennials are taking over the suburbs. Large amounts of individuals are moving outside the city searching for bigger and better. They are bypassing the starter home and looking for the best new thing. From needing at-home offices to wanting space to tinker in the garage, the answer is out of the city and into the suburbs.
The suburbs offer the opportunity to distinguish home life from work life. With the mass uprising of working from home, lines have become blurred. Many find it hard to switch from one to the other when they are so entangled. Moving from smaller spaces into larger homes allows for dedicated spaces to be work areas, where apartment rentals can have you working at the dinner table.
Whether trying to make a distinct divide between work and home or seeking a slower pace of life, the millennials are headed into the suburbs.
How Tim Lewis is Adapting
Tim Lewis Communities is adapting to the ever-growing needs of this new generation of homebuyers. To ensure we are equipped with the information and resources that our clients are after, we are constantly updating our website to provide a reliable and easy time for our visitors.
The homebuying journey can be long and time-consuming, but our company guarantees an enjoyable experience by staying in frequent communication with buyers. Our goal is to be a place of knowledge for all things real estate while providing the latest information to homebuyers.
While our company loves face-to-face communication, we also offer Zoom calls for out-of-town buyers. We understand your needs and want to make your home buying experience as smooth as possible!
Navigating the Homebuying Process as a Millennial
Taking the next step in building your future is exciting and unforgettable, so get started today!
We are eager to serve you and help you through this life-changing journey!