JeanneBelieve 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?

home theater

  • 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
  • Technology
  • 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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