by | Apr 20, 2016 | Blog, Real Estate, Tyler Sheff
The millennial age is considered those who were born between 1980 and 2000. This generation has a significant pull, not only on the real estate market, but on the overall economy. Their preferences and opinions tend to shape our society, which is why they’re considered the most influential generation today. For the past several years, most market analyzers were under the notion that the millennial age has an unwavering love for cities. First-time home buyers had hit an all time low since 1987, 32% of all purchasers in 2015, which might suggest that the millennial age was reluctant to move to the suburbs. The decrease we saw in first-time home buyers made the market more challenging for the older generations. Without the millennial age on the housing market, current home owners were finding it difficult to sell their property after retirement, which makes for an unhealthy market. Fortunately, it seems as though that “urban boom” we were experiencing was simply a phase. In an earlier blog of mine, I discussed the reasoning behind the decrease in first-time home buyers. Student loans are a significant part of the equation here. Loans are substantially higher than they once were, and in conjunction with the rising rents, it leaves millennials unable to save for a down payment. There’s also a change in culture. People are more likely to get married at an older age than they once were. According to statistics from Pew Research Center, the median age for a man’s first marriage was 23 back in 1960, as of 2010, it was nearly 29. The millennial age, being at a median...
by | Feb 26, 2016 | Blog, Real Estate, Tyler Sheff
It’s no surprise that the rate of first time home buyers has been steadily declining for some time now. There’s a variety of factors contributing to the lack of under-35 buyers we’re seeing out in the market. Student debt, a change in family dynamics, and pure preference are all playing vital roles in the market we’re seeing today. For one, student debt is out of control. According to The Wall Street Journal blog, the average student debt in 2015 was $35,000, which makes it quite challenging to save for a mortgage. Although unemployment is down, most millennials aren’t making enough to support both their rent and student loans, let alone save for a home. Another change we’re seeing in the market goes back to family dynamics. The millennial age isn’t as quick to settle down with a family as society once was. More often than not, they’re opting to put off marriage and children until their mid and late thirties. Thus, they’re more likely to continue to rent until later on in life. Unlike earlier years, millennials aren’t so quick to choose a suburban life for their families either. More and more people prefer to raise their children in urban settings, as opposed to, what was once, “the suburban dream”. What might further attribute to the lack of millennials on the market, is the inventory of entry level homes available. Today, developers aren’t catering their plans to the millennial, as they’re likely aware of the current trends with that generation. According to the National Association of Home Builders, about 20% of new construction is attributed to entry level properties,...
