The Millennial Generation is Driving the Housing Market
The millennial generation is known for being change-makers and boundary-pushers, and this trait extends to the housing market as well. According to a recent report by the National Association of Realtors (NAR), millennials make up the largest share of homebuyers at 43%, a figure that continues to grow. This is a significant statistic, as it shows that the millennial generation is shaping the next frontier of the homebuying process.
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.
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.
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.
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.
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.
Unreal Estate holds real estate brokerage licenses under the following names in multiple states and locations:
Unreal Estate LLC (f/k/a USRealty.com, LLP)
Unreal Estate LLC (f/k/a USRealty Brokerage Solutions, LLP)
Unreal Estate Brokerage LLC
Unreal Estate Inc. (f/k/a Abode Technologies, Inc. (dba USRealty.com))
Main Office Location: 1500 Conrad Weiser Parkway, Womelsdorf, PA 19567
California DRE #01527504
New York § 442-H Standard Operating Procedures
TREC: Info About Brokerage Services, Consumer Protection Notice
UNREAL ESTATE IS COMMITTED TO AND ABIDES BY THE FAIR HOUSING ACT AND EQUAL OPPORTUNITY ACT.
If you are using a screen reader, or having trouble reading this website, please call Unreal Estate Customer Support for help at 1-866-534-3726
Open Monday – Friday 9:00 – 5:00 EST with the exception of holidays.
*See Terms of Service for details.