Millennials and Home Buying: 3 Trends for 2017

A new generation of home buyers is entering the market — the Millennials. Relative to other generations, Millennials have been hesitant to purchase homes as they have reached their 20s and early 30s. High student debts, low paying entry-level jobs and rising home prices have all contributed to the reliance on rentals. Fortunately for Millennials, and anyone looking to sell their homes, that is all set to change in 2017.

According to analysts at the National Association of REALTORS® , Millennials made up the largest group of home buyers at 35%, a figure that is sure to grow in the coming year. As Millennials grow older, they are beginning to find themselves in a position to purchase real estate for the first time. Millennials and home buying don’t seem like opposites after all. Here’s why the new kids on the block are finally in a position to purchase:

Boomer Downsizing

As the majority of Millennials have moved away from home, Baby Boomer parents are adapting to the empty nesting lifestyle. Without the kids to take up rooms in the home, it might feel like the living space has doubled in size. A bigger home is always better, right? Not for everyone. In fact, many Baby Boomers are looking to move into a smaller home that is easier to clean and decorate.

Of course, every parent is different, and some are sure to enjoy their newly realized expansive square footage. On the other hand, some Boomers are using their home investment to move somewhere smaller and pocketing the difference in home equity. This leads to more real estate options on the market for younger people, who dream of the property owning lifestyle as much as any other generation.

Career Advancement

Many Millennials entered the job market during the height of the recession — an event that left a lasting impression on fiscal confidence. As the years have passed, the job market has grown, along with Millennials’ career ambitions. The oldest members of this generation are in their early 30s and not trying to get their foot in the door any longer. Career doors are opening for many Millennials, which means home doors are as well.

Minnesota is an especially promising real estate market for Millennials. As highlighted in the Business Insider map above (one that counts college-age students, bringing down income figures), Minnesota Millennials are among the top earners in the country. The healthy job market means that Millennials are increasingly able to progress in their careers and earn enough to realize home owning ambitions.

Changing Attitudes

Purchasing a home is a significant milestone in a person’s life, but it often comes after other important life events. Before homes are even on the radar, events like marriage, having children and career stability tend to take priority. After all, it doesn’t make much sense to buy a home if you don’t know who to share it with.   One reason 2017 a promising year for Millennial home purchases is the fact that this generation is transitioning from the young adult stage of their lives to the adult stage. As mentioned before, the oldest Millennials are in their 30s  — a time in life that’s ideal for settling down and starting a family. The generation that made it acceptable to live in their parents’ basement in their early 20s is beginning to get basements of their own.   Millennials may have had a slow start in the real estate market, but they are set to take it by storm in 2017. This generation isn’t just made up of kids anymore, and they share the same home owning dreams of Generation X and the Baby Boomers. If you’re in the market to sell your home, this is great news. The pool of potential buyers is changing every year, and this year brings a new crowd. If you’re part of this generation, be sure to do your homework before starting your home search. There are great deals to be had, you just need to know what to look for!

RE/MAX RESULTS