Today’s young millennials are a different type of buyer. They are more educated, more technology inclined and they are more cautious then previous generations. With that being said where does the Real Estate Future lie ahead? Young millennials are not getting into debt whether mortgage or loans because most have high debt from some type of secondary education. They have also seen their parents struggle and lose their homes which left a significant impact on their behavior. Millennials spending habits are different then previous generations and they are more frugal and more calculating.
Where does this leave us? Good questions millennials move slower in the housing market. They are more likely to rent or live with their parents for quite some time before they decide to buy. This means that there will be less demand in the market which ultimately leads to lower pricing. Currently price home pricing are already showing a decline that will continue depending on what the interest rates do. Since Millennials are frugal they are not going to easily get into a mortgage with a high interest rate. However, the catch 22 is if interest rates continue to stay low it will cause major inflation therefore, the Fed’s must increase rates to control the inflation. So how do we get these young millennials to purchase property and view it as an investment not a liability? This will be the key toward moving forward since without people buying homes the economy will crash.
Conclusion, build affordable homes that people are able to sustain and afford. Young people need to be educated on the value of owing your own property. How it should be viewed as an investment not a liability but how do we convince them of that when they witnessed their parents lose value on their home.