Greenbook: A Local Guide to Chesapeake Living - Issue 8 | Page 48

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TRENDS

Millennial
Home Buyers

previous generation has had to face", Lucy Mueller wrote
on the Forbes.com blog Millennial Money.
Despite these factors, Millennials are looking toward their
financial future with strategic wealth management and work/
life balance in mind. Millennials are getting married later,
By Eric Sasko
Millennials aren’t just texting and tweeting.  They are entering joining forces with family, friends and colleagues to strengththe real estate market as new homebuyers in record numbers. In en financial options, and looking for careers that will support
fact, a 2015 study by the National Association of Realtors (NAR) the ability to capitalize on real estate as a long-term financial
found for the second consecutive year that the largest group of strategy. “Fixed monthly payments and the long-term finanrecent buyers (32%) was the Millennial generation, people aged 34 cial stability homeownership can provide are attractive to
and younger. Approximately 43 million Americans are between the young adults despite them witnessing the housing downturn
and subsequent slow recovery in the early years of their adultages of 25-34.
hood,” said Lawrence Yun, NAR chief economist.
uring the recessionary years of 2007-2009, and up
Millennials comprise the largest segment of the real esuntil 2013, Millennials (people born between 1980 tate buyer market, ahead of even Generation X, (those born
and 2000) were cautious of entering the real estate between 1965 and 1979). Yun says the 2015 NAR survey highmarket. An uncertain economic future and a general dis- lights the untapped demand for homeownership that exists
trust of financial markets made investing in real estate among young adults. “Over 80 percent of millennial and Gen
unattractive. Many Millennials watched their parents suf- X buyers consider [purchasing a home] a good financial infer through upside-down mortgages, lay-offs, investment vestment,” he said.
losses and increased costs of living. Millennials underThe expectations of Millennial homebuyers differ from
stood that home ownership required staying in place and previous generations of real estate investors. Some buyers
a steady income, two things that the new economy could prefer a turn-key property that requires little refurbishment.
not guarantee.
Others want something they can put sweat equity into. They
Today, Millennials face higher unemployment rates want their home to reflect their personality and values.
than previous generations. They are encumbered with the
Millennials value proximity to urban areas, town centers,
increasing costs of education. And they are waking up to or communities where they can be active socially and recrethe reality that rents are rising faster than home prices. ationally. They see a house as more of a “home base” than a
“Millennial homeowners are saddled with obstacles no point of gathering.

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GREENBOOK | SUMMER 2016