The housing market is significantly impacted each time a new generation reaches adulthood and begins to explore housing options. Think back to the Baby Boomers, who were so vast in number they sparked an entirely new construction boom. Next came Generation X, which stimulated its own boom in a housing sector that reached near-bubble proportions due to easy and aggressive financing. Fast-forward to today, where the newest generation – Millennials – are a part of the buying mix. These individuals range from 37-year-olds who are already on their second home, all the way down to 20-something first time homebuyers. In addition to facing an inventory strapped market, Millennials enter the housing market with additional challenges that include heavy student debt and having graduated college during a recession.
How are Millenials are dealing with this challenges?
As a generation that saves, Millennials will put down the 20% needed to secure a mortgage to avoid falling victim to the housing finance bubble their Generation X predecessors faced. And, with the advent of the Internet, Millennials are a tech-savvy generation that thoroughly research home-buying in ways not possible before. Finally, they are a generation that will network with friends and peers to find the best possible home, with all the desired upgrades, at the best possible price.