Impact of the millennial generation on the housing market

The impact of the millennial generation on the housing market cannot be understated. In 2020, millennials took the title as the nation's largest generation according to Pew Research Center. At about 70 million strong, this generation is making waves in the industry by pushing the boundaries of home ownership. Known for being tech-savvy and always on the lookout for new opportunities, they have become a force to be reckoned with in the housing market.

One of the most notable changes brought about by millennials is the shift from renting to owning. Once known as the "rent generation", millennials have proven to be clever buyers who are nimble in their quest to own real estate. This is a key factor in the overall health and stability of the current housing industry.

Growing Appetite

Despite uncertain economic factors and soaring student loan debt, millennials still have a desire to achieve homeownership. ServiceLink’s 2022 State of Home Buying Report found that 26% of this group are likely to purchase a new home in 2022, compared to 12% of Gen X and 6% of baby boomers. This data suggests that millennials will continue to drive the majority of housing demand, which has remained strong throughout the pandemic period. Additionally, millennials also lead the pack in terms of those likely to refinance at 32%, which is more than triple the 9% of baby boomers who are planning to refinance in 2022.

Buying Sight Unseen

The competitiveness of the housing market has made buying sight unseen an increasingly popular trend. While it may not be the most desirable way to purchase a property, millennials don't seem to be as deterred as their counterparts. ServiceLink also reported  that 23% of millennials would purchase a home without seeing it in person first, as compared to only 16% of Gen X and 5% of baby boomers. This shows that millennials are prepared to act fast and more willing to take risks when it comes to buying a home.

Emerging Sectors of the Housing Industry

The millennial generation is also leading the way in emerging sectors of the housing industry, such as the auction market. More than half, or 55%, of millennials have or would be willing to buy an auction property. This is a significant number and one that highlights the entrepreneurial spirit of the millennial generation.

Conclusion

It's clear that the millennial generation is having a huge impact on the housing market. They are changing the way we think about home ownership and are exploring new ways to adjust to the evolving housing market. As the largest generation of home buyers, they are key to the overall health and stability of the current and future housing industry. At Unreal Estate, we understand the nuances of the millennial market and can help you navigate the ever-changing landscape of the housing market. Visit our blog to stay up to date on the latest trends and preferences of this powerful demographic.

We'd love to hear your thoughts about this article and our blog. Let us know how we did by completing the Unreal Estate Blog Feedback Survey.