(PRWEB) February 20, 2015
According to Realtor.com, the Millennial Generation (aka Gen Y), represented by people born between 1981 and 2000, represent a new and growing economic force in the housing market.(1) This generation currently heads up about 20 million households in America. With their median age at 23, their economic buying power is just getting started, and what a start it is, as Millennials made up nearly 30 percent of buyers and 14 percent of home sellers in the housing market in 2014. Murline Monat, real estate agent specializing in Castro Valley, CA provides a wealth of information on her website Castro Valley Neighborhoods.
What do Millennials Want in Housing?
A survey released by the National Association of Home Builders and reported in the Wall Street Journal (2) reveals that most Millennials want to live in single-family homes in the suburbs. The survey found that based on responses from 1,506 people born since 1977, 66 percent want to live in the suburbs, 24 percent want to live in rural areas, and only 10 percent want to live in a city center. Homes and community information are provided on the Castro Valley Neighborhoods website, which showcase the types of homes Millennials are interested in.
The Millennial generation (70 to 80 million in size) represents an economic powerhouse not seen since the baby boomers (born between 1946 and 1965), with a population size of 76 million.
The survey results could be called into question because the survey narrowed the respondents to people who have already purchased a home in the past three years, or plan to in the next three years. This eliminates a large group of people who intend to rent for many years, in part because of hefty student debt and tight mortgage lending standards in recent years. Even so, at 70-80 million strong, with a median age of 25, the Millennials are an economic force not to be ignored.
Boomers vs. Millennials
According to Homes.Yahoo.com, Millennials and Boomers share an attraction for living in popular cities such as New York, Boston, Miami and San Francisco.(3) The difference is that Millennials are renting and the Boomers are buying; cashing out and downsizing into smaller but more expensive homes or condos.
The Future of the Housing Market
Murline Monat, Castro Valley real estate specialist says The next huge generation of homebuyers, the Millennials, also known as the Gen Y generation are about to change their focus from downtown condos with a high walk scores to suburban America. The transition will be on their terms. Two thirds of homes sold will be to this this up and coming generation, who want a home in convenient neighborhoods, yet close enough to downtown areas to support their prior downtown social network. Also, it turns out that many Millennials and Baby Boomers (Gen Y parents) enjoy lifestyle similarities. Boomers are also moving to the cities or buying smaller, single story homes to enjoy the social connections of their peers.
About Murline Monat, Realtor