There’s a common misconception that younger generations aren’t interested in homeownership. Many point to the fact that millennials put off purchasing their first home and have rented for a lot longer than their preceding generations did. Real estate professionals can take this information and let it fuel them as they search for the elusive inventory in today’s market. Finding inventory in a low-inventory market can be difficult, but young generations are in need of housing and professional, quality real estate services.
Odeta Kushi, Deputy Chief Economist for First American, explains why millennials have put off certain milestones linked to homeownership. Those delays led to their homeownership rates trailing slightly behind older generations.
Historically, millennials have delayed the critical lifestyle choices often linked to buying a first home, including getting married and having children, in order to further their education. This is clear in cross-generational comparisons of homeownership rates which show millennials lagging their generational predecessors.
Data from the National Association of Realtors (NAR) indicates the average age of a first-time homebuyer is higher today than it’s been over the past 40 years. Homebuyers today are purchasing their first home an average of 4 years later than people in the 1980s and in the early 1990s. But just because millennials are hitting certain milestones later in life doesn’t mean they’re not interested in becoming homeowners. As a real estate agent, this is great news if you thought the pool of buyers interested in homeownership was shrinking.
The recent U.S. Census reveals a significant increase in homeownership rates for millennials and other young homebuyers. Millennials are entering the market in full force, and their share of the market is growing. Based on the data, the belief that younger generations don’t want to buy homes is a misconception. In fact, the recent Capital Market Outlook report from Merrill-Lynch further drives home this point, as it specifically mentions the effect millennials are having on demand for homes to purchase.
Demand is very strong because the biggest demographic cohort in history is moving through the household-formation and peak home-buying stages of its life cycle.” Kushi puts it more simply, saying, “. . . it’s clear that younger households are driving homeownership growth.
As the largest generation, millennials’ impact on the market is growing as more and more people from that generation reach home-buying age — Generation Z isn’t far behind either. That means younger generations will likely continue to drive demand in the housing market for years to come. Keeping this in mind, real estate agents can structure their business strategies around the needs of younger clients who are looking to buy as well as continue to use fair housing practices to serve their clients in a professional manner regardless of their age.
If you are interested in how you can increase the listing side of your real estate business, schedule an appointment for a free business consultation with a Workman Success Systems expert analyst. When you implement Workman Success Systems’ proven strategies, real estate coaching can be the key to unlocking real growth in your business.