Millennials & the Housing Market
In the last seven years, the housing market faced a tough downturn. Recently, the real estate market (and the economy as a whole) has shown signs of great recovery. The future of housing in the greater Phoenix and East Valley area should improve even better in 2015 and beyond thanks in large part to millennials entering the housing the market.
The term “millennials” is used to describe young adults who were born from the early 1980s through approximately the year 2000. For the most part, it means those who are currently ages 18-34 or will soon be entering that demographic.
In recent years, millennials have been living at home with their parents far longer than past generations, while some have been living in inexpensive rentals. Among the reasons for these living arrangements has been uncertainty about the economy, job market difficulties, and massive student loan debt. Those who tried to enter the housing market found obtaining a home loan a much too difficult task.
However, recent surveys are indicating that situation is close to changing, with millennials now looking at home ownership.
In the past year, job growth for those aged 18-34 has grown by 60% over that for other age groups. With increased income, life changes (such as marriages and children), low mortgage interest rates, and new mortgage plans for first-time buyers, millennials are finally poised to take the home market by storm.
It has been estimated that nearly one-third of home buyers in 2014 were millennials. Within the next few years, millennials could represent two-thirds of all home buyers. Overall, these millennials will be the driving force of the real estate market for the two decades.
According to a 2014 report created by the nonprofit organization Demand Institute, 60% of millennials plan to purchase a home at some point. 73% believe that home ownership is an excellent investment, plus 75% of the group believes that home ownership is an important long-tern goal.
48% of those surveyed felt they would purchase in the suburbs. The majority of those surveyed wished to be near restaurants, grocery stores, and shopping.
It no longer is a question of if and when the millennials will be entering the housing market. It is now a question of just how strong they will make the market in 2015 and beyond.
If you need additional tips for staging a home during the winter, I would be glad to assist you.
Thinking about selling or buying a home in the Fargo or Moorhead area? Need some home selling tips to give you an edge towards making a quicker sale? Talk with an expert who can guide you through the entire process! You can also fill out the FREE Home Value Analysis and find out! Contact Jim Kapphahn, the real estate expert, at 701-367-9719.
Posted on March 6, 2015 at 12:06 am by Jim Kapphahn
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