Millennial Buyers: 5 Trends to Know
Although the exact age at which this generation starts and stops is still widely debated, millennials are defined as the first truly digital generation. According to the US Census Bureau, millennials born between 1982 and 2000 account for one fourth of the US population, the largest living generation.
The largest group of millennials will turn 30 in 2020. This means they will soon enter their prime home-buying years with strong buying interest and buying power. By studying the latest data and home buying trends, Mark Spain Real Estate is able to understand what matters most to this wide generational group. Check out these 5 trends we are seeing in millennial buyers both locally and nationally, according to the National Association of REALTORS.
PRIORITIZING SHORTER COMMUTES
Millennials are buying single-family homes closer to their previous residence more than other generations. Commuting costs are a big deal to millennials. They are moving an average of just 10 miles away from their previous residence while older generations move an average of 30 miles away. Additionally, relationships are also a big deal to millennials. Distance from both friends and family is one of the millennial’s highest considerations. More than any other buying age under the age of 73.
OPTING NEW TO AVOID RENOVATIONS
Despite their love of HGTV, research shows older millennials are avoiding massive renovation projects in their next home. 51% of older millennials buy new homes to avoid renovations. That’s over half of the older millennial buyers who are avoiding repair projects. Meanwhile, the 64 to 72-year-old buyers are opting for new at just 27% and seem more open to exercising their inner Chip and Joanna Gaines on a fixer-upper.
WILLING TO CONSIDER FORECLOSURES
Younger millennials, 21-28 years old, are more likely to consider purchasing a home in foreclosure out of all the generations. Because Mark Spain Real Estate agents are the most experienced agents in the industry; we are able to offer a full spectrum of options, including foreclosures, to our millennial home buyers.
SAVING FOR DOWN PAYMENT IS TOUGH
With high student loan debt, 26% of millennial homebuyers cite saving for the down payment as the greatest hurdle in the home buying process. Among the buyers who have debt; research shows that debt, including student loans specifically, impacts buyers’ ability to save for a down payment.
While 87% of all buyers use financing, 97% of millennials are financing their homes; which shows the impact of debt on down payments and financing needs among this generation of buyers. Because Mark Spain Real Estate partners with the best professionals in the industry; we are able to help our buyers avoid this hurdle. Our preferred lender, Shelter Home Mortgage offers programs such as the 0% Down Payment Program, which helps bypass saving for a hefty down payment and eases the stress of purchasing.
VALUING AGENT HELP
While the data still shows that over 50% of buyers in every generation want an agent’s help to find their best next home, millennials are benefiting the most from an agent’s help in understanding the home buying process. Agents have an opportunity to educate and assist a very receptive generation in a profound way in today’s market.
Additionally, agent referrals from a trusted source are highest among millennials, over 50% of millennials will refer an agent. These home buyers are looking for agents who are honest and trustworthy, which is the commitment of every Mark Spain Real Estate agent. Millennials look for integrity and they trust a friend or family member who can vouch for an agent’s character.
Looking to buy or sell your home this year? It would be our pleasure to walk you through the process! Contact us to speak with one of our experienced agents today!