Real estate markets can be unpredictable. But there are certain commonalities related to shifts in human populations—specifically as regards mainstream generations. A human generation is typically about twenty years. Going further there’s a general life arc that tends to have a seventy-year expectation attached to it. This piece looks specifically at the millennial generation and millennial real estate trends we can expect in the coming year.
Navigating Real Estate Trends
Birth, childhood, adolescence, early adult education, marriage, career establishment, equity, having children, estate maturation, and estate liquidation describe the ideal cycle in a nutshell. Savvy real estate people lean into this natural human cycle. For those that have gotten into the “career establishment” phase, property acquisition is just around the corner.
Millennials started hitting this area of life around 2010. The majority of this generation will pass into the next generational echelon of development by 2030—or so it can be expected if you reckon the last millennials as having been born in the late nineties. Accordingly, 2020 represents a prime nexus point in home acquisitions for the world itself, not just the USA.
Following, we’ll briefly explore three trends intimately tied to the current place the millennial generation occupies in society. The long and short of it is: if you’re looking to buy a house, now is a very good time. The wave is in its middle, and there are many opportunities to be explored.
1. The Tiny Home Movement and Consequences
One of the reasons for the tiny home movement is the existence of a high number of people in need of a home, but working with a low level of savings. Home values have moved higher and many young would-be home buyers just aren’t in a place where they can afford such higher costs. That’s why we’re seeing the rise in popularity of tiny houses, mobile homes and even van-dwelling among this younger generation.
This has had some effect on the housing market. Economic factors do that. 2008 saw a massive financial crisis right before the first part of the millennial wave crashed into the shore. Entire cities had the economic rug pulled out from under them. One of the most prolific examples of this was Detroit. But Detroit wasn’t alone.
Owing to this financial crisis and the rise in tiny home focus among millennial Americans, more and more young families are willing to consider bottom-dollar properties that may have been foreclosed. It’s often cheaper than rent. Just for kicks, Google some of the “cheap houses in Detroit” and see what pops up!
2. First-Time Home Buyers are Millennials
Lately, a majority of today’s first-time homebuyers have been millennials. The increase in this phenomenon will not be diluted by the year 2020. In all likelihood, this trend will continue. Some new construction developers are catering to this sector the market with designs and prices targeting millennials specifically.
This will mean three things:
- Agents will need to understand these millennial real estate trends if they want to stay on top. First-time homebuyers are a very different animal than those who have bought multiple properties.
- Millennials are the most tech-savvy generation to date. The most successful real estate agents will have mastery of current tech in order to better communicate with these house hunters.
- There will need to be more education for these buyers when it comes to mortgages, homeowner associations and other related financial aspects of buying a home.
It’s important to go into the home-buying process with reliable consultation if you’re new at this and a millennial. Check out Top 10 Tips for Louisville First-Time Home Buyers for more information on this topic.
3. More Millennials Will Buy Homes In 2020, Despite Scarcity
Tiny homes are making it so that “starter” houses are more affordable; but more legitimate starter-homes are in short supply. For example, if you’re in a community like Dallas, you may have to tread water in an apartment for a few months to a year before finding the perfect place. In such a scenario, you might want to search Dallas apartments by neighborhood.
2020 may be the year you find your home, but it may be necessary for you to live in an apartment for a short-term lease in order to find and move into the best property at the best time—you’ll get more deals near Christmas than summer. So think outside the box.
Informing Your Real Estate Ventures In 2020
Millennials will flood the market, constituting the lion’s share of buyers in the coming year. They were already on top, now there will be more. The tiny home movement and economic issues have additionally altered the landscape. If you’re going to find your home in 2020, these millennial real estate trends are worth taking into account!