Millennials are going to be the target audience for home buying for quite some time, which could spark some bigger interests, but also bring in a broader variety of homes into view.
In a survey done by Northshore Fireplace, "Almost half the millennials surveyed (45 percent) say they expect their first home to be their "dream home," according to a new survey of 2,000 millennials between the ages of 22 and 37." This can be seen as an unrealistic view. However, the generation is willing to relocate.
From the survey, 65 percent of these millennials said they are willing to move and open their horizons to find their "dream home." With 45 percent of the surveyors saying they would be willing to move to a different state.
However, Lawrence Yun, the Chief Economist at the National Association of Realtors (NAR) states, "The high cost of rent and lack of affordable housing inventory is sending adult children back to their parents' home either out of necessity or an attempt to save money." Some millennials haven't left home, and some are even returning home. The generation could be trying to save money or could be going back home to take care of aging or sick parents. Now because of these situations, the multi-generational homes are the preferred choice for Gen-Xers and older millennials.
With the millennial generation spanning from more likely to buy a home (the older part of the generation representing 26 percent of home buyers) to less likely to buy a buy home (the younger part only accounts for 11 percent of home purchases), this can lead to conflicting views for the generation.
The gap also brings money into view. With the average cost of a home in the United States being $249,500 (which was pulled from the NAR), are millennials willing to spend money? Well, the same millennials surveyed believe their first home will cost (on average) $218,152, meaning the group is off by $30,000. Also, half of the group only has $2,000 or less to spend on a down payment.
Porch.com also did a study on how much millennials were willing to pay for must-have amenities, "such as a private backyard or patio (they're willing to pay $7,009 more for a home with one); a swimming pool (they'd pay $6,346 more for one); central air conditioning and heating ($6,194); and solar panels ($5,469)."
However, the generation does put their other issues into consideration. With 41 percent being wary of mortgage payments, 35 percent being worried about home maintenance, 17 percent being scared of being stuck in one location, and 7 percent over thinking upkeep of the home. But these millennials are purchasing the less expensive homes on record. The generation is learning, and they are the target audience for home buying. Millennial buyers are willing to make some sacrifices, but they are also willing to spend the most money (if) they can.
One thing the millennial generation will not have to be worried about is the closing process, and that is because they will have SETCOs top of the line staff ready to work with them from beginning to end. SETCO is also partnered with Qualia that makes the closing process easier and creates a stress-free for the client.