Millennials, the most populous generation, live and breathe technology. They are more woke and aware of what’s going on in today’s real estate industry/market. America is witnessing its largest force in the housing market, thanks to the generation of smart buyers.
Despite unprecedented challenges such as the pandemic, the demand for real estate has been unending. Millennials are taking out mortgages to purchase homes, be it expensive apartments or budgeted abodes.
The more you study millennials, the more you would wonder if their decision is backed by impulsiveness or if there’s deep logical research that helps them make a smart decision. In this blog, we have highlighted how various real estate tools and technologies have helped today’s buyers to curate carefully and choose wisely.
Here are some key findings of millennial behavior:
- 37% of homebuyers were millennials in 2020. That being said, despite millennials being the largest lot of this population, only 17% of them own a house
- Almost half of the older millennials are purchasing homes worth $300,000
- Millennials were responsible for 53% of new mortgages in April 2020
- Saving for a downpayment was one of the biggest challenges for this generation
- 18% of millennials opt for renting a space instead of owning it. The percentage has increased by 11% since 2018
This shows how a young lot of homebuyers can be a perfect blend of smart buyers or impulsive investors. While baby boomers have dominated the real estate market for a long time, it is the millennials who are taking over by being the largest homebuying generation.
There are several reasons why millennials love to take the modern approach to purchasing a house. Thanks to technological advances, we’ve seen many homebuyers relying on real estate websites. There has been a substantial increase in websites providing exact services like a traditional real estate agent would, without burning a hole in your pockets.
- WHY ARE MILLENNIALS CONSIDERED AS SMART BUYERS?
The evolution of technological advances changed the way real estate operates. Traditional real estate agents were replaced with For Sale By Owners websites, typical 5–8% agent’s commission was replaced by Flat fee MLS, hidden costs were eliminated, thus creating more transparency and smooth transaction for buyers and sellers.
And with every information available on the internet, buyers are becoming more woke and aware of the market trends. With various real estate tech tools such as the closing cost calculator, showing time, and more such tools coming to the rescue, the decision-making process is backed by statistics and factual research.
With such advancements, millennials have been served everything on a silver platter. This not only helps them make smarter decisions but also eases out the process, which once was tedious and tied with paperwork.
Real Estate giants like Houzeo, Redfin, Zillow, and more are dominating the online real estate market, offering higher profits, extra savings, and more control over the sale.
- OR ARE MILLENNIALS IMPULSIVE?
This generation is known to survive on its impulses and “you only live once” theory. That could be problematic in some cases like making crucial financial decisions like buying a house. While some may be struggling with arranging money for the down-payment, some may take the optimistic route to buy a luxury home by applying for a mortgage.
Around 53% of millennials summed up to be the mortgage appliers in April 2020. Impulsive decisions can cost you a fortune, but this generation is rather smart than blinded by fantasies.
TO CONCLUDE:
The millennial generation loves the word “savings.” The moment there’s any scope of saving time or money, the young lot would jump on the deal. With real estate websites, things are done in minutes. With the flexibility of prices, the older millennials prefer to invest in luxury living as opposed to the younger generation being more frugal.
Millennials have faced far more challenges than ever. With the pandemic striking and economic conditions wavering, they have now arrived here to dominate the real estate market.
