Believe it or not, an entire generation of homeowners is just around the corner. According to USA Today, Generation Y or “Millennials” comprise the nations largest demographic – over 90 million – much larger than even the Baby Boomers. Gen Y consists of Americans born between 1982 and 2001. Not to make you feel any older, but the oldest of the Generation Y constituents are now in their early 30’s and are wanting to buy homes – lots of them. Just like ‘the me generation’ of the 1980’s differed from their conservative parents, Generation Y real estate trends are also diverting from the tried and true ‘norm’ of the past couple decades.
Who Are the “Gen-Y’s”
- They are highly educated, inquisitive and curious. They understand the real estate industry and tend to research more.
- By 2017, Gen Y will represent 44% of home buyers.
- They tend to be hip, stylish and social.
- They value homeownership as an investment.
- They tend to be frugal, having come out of school into a deep recession.
- They aren’t impressed by traditional luxury.
What Are They Up Against?
- Years of being underpaid or underemployed due to the struggling economy has made it difficult to save for a down payment.
- Student loan debt is eating away at their savings capacity and debt to income ratios for loan qualification.
- Low housing inventory has kept many on the fence, waiting for the right time to buy.
What Turns Them Off?
- Energy Inefficient and wasteful homes
- Large Unusable spaces such as formal living and dining rooms
- Suburbs, McMansions and massive homes
What Do Gen-Y’s Want to See?
- Smaller homes with flexible floor plans utilizing every square foot
- Larger kitchens in lieu of formal dining rooms
- Home offices in liew of formal living rooms
- Energy Efficient Homes
- Urban, dense communities
Are you you a millennial? What do you look for in a home and which ‘norms’ could you do without? It’ll be interesting to see where Generation Y real estate trends will go – we’ll have to wait and see how powerful the millennials become.
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