How You Can Help Support Millennial Clients
While it may be rumored that Millennials are choosing to delay homeownership in favor of renting, statistics from the National Association of REALTORS® suggest otherwise. According to the recent 2018 Home Buyers and Sellers Report, buyers aged 37 and younger (Millennials and Gen X) currently make up 36 percent of current buyers, with 65 percent of them buying for the first time. The 2018 research showed more Millennials are now following the path of older generations and moving to suburbs as opposed to staying in cities, and 48 percent of these young buyers are also parents, which means as their families grow, so too does their need for homeownership.
So what are Millennials looking for in their new homes? According to research, some members of the younger generation are skipping right past the “starter” home and searching for their “forever” spot, ideally a home they can be in for over 10 years. Also important to them is a walkable neighborhood, ample outdoor space, and community amenities like good school systems, parks, cultural and recreational opportunities.
And lucky for the real estate industry, a recent Harris Insights survey showed that younger generations are even more likely to use a real estate agent than older generations. In the study, a full 91 percent of respondents aged 18 to 34 used real estate agents in their real estate transaction, compared to only 81 percent of Baby Boomers.
What are some of Millennials’ biggest challenges? With student loan debt and job competition high, it’s no surprise that one of the biggest challenges for many Millennials is coming up with a down payment and struggling with credit tainted by education debt. This combination of potential large financial hurdles to homeownership is causing some Millennials to delay their first home purchase, some studies show.
Marketing to Millennials. If you’re hoping to work with more Millennials, consider tailoring your offerings specifically to their needs. Keep up with them on social media by using some of their favorite features, like Facebook live, Instagram stories and snapchats.
You may also want to consider offering a flexible housing option, like Home Partners of America’s Lease Purchase Program, through which Home Partners works with a potential resident to identify a home they interested in, purchases the home, and then leases it to the resident with a right to purchase in the future. This unique program provides Millennial renters the opportunity to get into the home of their dreams, try it out, and buy it, if and when they are ready to.
Visit HomePartners.com to see if the Lease Purchase Program is available in your area. Program terms apply.
For the latest real estate news and trends, bookmark RISMedia.com.
