It seems like almost every industry is interested in millennials and the economic role they will play in the upcoming years. A millennial is anyone between 20 and 35 in 2016. Census Bureau finds Americans less than 35 years old represents the biggest age demographic in the workforce, but more than 60% of millennials employed full-time earn less than the median income level of $46,480. This new generation’s values differ from the baby boomers in that they are putting careers and education first instead of settling down.
The real estate industry is waiting for millennials to marry, have kids, and settle down in a home but many of them are happy living in apartments. Nearly 100,000 apartments became available in the third quarter of 2015, which is 21 percent more than a year earlier and 73 percent more than two years ago. Due to high demand, more than 80 percent of these new apartments are rented within a year. Nearly half to two-thirds of apartments completed in a given quarter rent within three months and that share increase to 70 to 80 percent within six months.
The rise in home values is pushing one in four buyers towards purchasing a home due to the high cost of renting, according to a recent real estate survey. This number is up from November when one in five buyers believed purchasing a home made more economic sense than renting, and jumped from one in eight buyers in August. Affordability was the main reason for buyers to purchase a home, followed by a major life event such as marriage or having children.
Many millennials are now seeing the extreme value in saving up and settling down. It is important to understand their motivations for buying a home can range from wanting to leave the rent cycle, major life events such as marriage or starting a family, to young professionals investing in future rental properties. We must adapt to the 83.1 percent of the population that has exceeded that of the baby boomers and will be the next generation buying and selling real estate.
Ramp up your Spring marketing to millennials with the postcard below available on Xpressdocs!
Postcard Use: Mail to renters of apartments in single family homes to develop potential buyers today.