Millennials aren’t buying, they’re investing in real estate

While many millennials find themselves priced out of the real estate market, many are investing in real estate in other parts of the country. Using online platforms such as Roofstock, they are able to pick properties on risk factors and various returns.

Generally smaller cities offer the best opportunities for consistent monthly returns. In some markets, appreciation of the real estate asset outpaces the monthly cash flow.

According to CoreLogic, 11 percent of single-family homes sold in 2018 were bought by investors, the highest percentage on record.

Share

Millennials finances improving

A new survey of 1,000 adults born between 1981 and 1996 shows that they are earning more and are confident that they will be able to purchase a home in the near future.

Much of the improvement in earning power comes from women who are making more money than women of older generations. Today’s millennial women are focusing more on careers at a younger age while postponing marriage and having children.

Only 10 percent of those surveyed said they would have to have help from their parents to get a mortgage down from 17 percent a year ago.

Share

Millennials are moving – away

The trend has been going on for a while now so it’s not really big news but more and more millennials are finding themselves priced out of the Bay Area. In a recent poll, more than 60 percent of those surveyed under 30 said they expect to leave the Bay Area in the next few years.

The other trend, of course, is living in the home in which they grew up – with their parents. Nearly 36 percent of Silicon Valley adults between the ages of 18 and 34 were still living at home in 2017.

High home prices, low inventory, and soaring rents are all continuing to contribute to this situation with no end in sight.

Share

More Bay Area millennials living with mom and dad

Sure, the economy is strong and unemployment is low but due to the high price and low availability of housing in the Bay Area, more and more millennials are moving back home after college. Throw in massive student loan debt and times are especially tough for this generation.

Naturally, the transition can be challenging for all involved and ground rules have to be set. Rent, groceries, laundry, chores all have to be factored in.

According to Zillow, nearly 14 million millennials have moved back in with their parents. The higher the rents, the more likely it is to see parents and adult children living together which explains why it is becoming increasingly common in the Bay Area.

Share

How to attract Millennials

Millennials are one of the largest markets these days and it’s important to know what they’re looking for and the best way to attract them.

  • Millennials prepare – and are in no hurry, Millennials grew up with the internet at their fingertips so it’s no surprise that they’re interested in all the information they can get before making a purchase. They research, they explore options and since many of them are currently living with their parents or a long-term share house they’re not going to rush into a decision.
  • Millennials like tech. Quality, integrated smart home appliances and internet connected cameras, locks, thermostats, lighting etc. are very important to this demographic, They’ll also count the outlets, check the ethernet connections, and, of course, make sure the house gets good cell service.
  • Energy efficiency is important. Since they lived through the recent recession and many are currently paying off sky-high student loads, millennials are always looking for ways to save money. At the same time, they’re also aware of the fragility of the environment and thus are more likely to be interested in home with good insulation, solar panels, efficient lighting etc.

Millennials abound and many are ready to buy; their approach is just different than their parents’.

Share

Millennials & Home Buying

Millennials are the largest generation in the U.S. and, according to MarketWatch, they’re the largest generation to ever enter the the housing market, currently at 17 percent. A few more facts:

  • They make up more than 30 percent of all homebuyers
  • 90 percent purchased in a major city
  • 80 percent consider home buying a good investment
  • A high percentage have a DIY attitude when it comes to research
  • Many have high student debt
  • On average it takes 12 and a half years to save for a down payment
Share

The changing demographics of homeownership

The days it seems as if everything is changing when it comes to homeownership. According to a recent study by the Stanford Center on Longevity, millennials are waiting until 30 or so to get married. This means they are having families later and buying a home later.

Currently, the homeownership rate at age 30 is approximately 36 percent whereas 49 percent of baby boomers had purchased a home by age 30.

Of course, the reasons are many. Young adults are now saddled with an average of $30,000 in student debt, housing prices continue to rise and, although the economy remains strong, wages are not commensurate with home appreciation.

Share

Talkin’ Millennials … Again

Millennials may not be everybody’s favorite topic – unless you’re a millennial, of course – but a new study by the credit report agency Experian has some interesting data. First of all, while 86 percent of millennials see owning a home as a sound financial investment, only 15 percent actually do so.

Part of the reason is low credit scores. While the average credit rating in the Unites States is 677, millennials between 22 and 28 have an average of 652 and older millennials age 29 to 35 have an average score of 665.

Millennial home buyers average 31 years of age with an income of $64,000 and are more prevalent in the South and West, according to the Experian study.

Share

Those darn Millennials!

Yes, it seems as if we’re always discussing Millennials, particularly they’re home buying habits (see , , , ) and a new report by the Urban Institute highlights the differences in their home purchase timeline as compared with other generations.

According to the report, millennials had a homeownership rate of 37 percent in 2015, which is 8 percent lower than Generation X and Baby Boomers when they were between 25 and 34 years old.

Of course, the reasons cited are familiar as well: a delay in getting married and starting a family (apparently marriage increases the probability of buying a home by close to 18 percent), massive student debt and high rents, making it harder to save up for a downpayment.

Finally, the current state of housing: high demand, low inventory, rising and rising prices might have something to so with it as well.

Share

Millennials Are Coming … to Sac & Not SF

Millennials are on the move – to Sacramento and San Jose in California – but definitely not to San Francisco!

According to a new study by SmartAsset, Sacramento and San Jose rank 3rd and 7th respectively nationwide as the cities millennials are migrating to. Overall, Seattle and Columbia, South Carolina ranked 1 & 2.

Interestingly, over two-thirds of the millennials moving to Sacramento were coming from within California.

Share