Amazing Millennial Real Estate Trends in 2020
Millennials. They are the tech-driven, wellness-focused generation that sprung to life between the 80s and 2000s. They’re also the driving force behind some of the most significant changes that industries have ever seen. From food production to automotive, not one’s been left untouched.
Real estate is another one of those affected. Millennials might have changed its face forever.
A Generation of Change
Millennials focus on less. For example, the statistics show that they spend less, opt for minimalist lifestyles, and adopt fewer bad habits. At the same time, there’s an increase in healthy living and fitness, social browsing, and online buying trends.
Unfortunately, it’s also the generation that makes a lot less money than the ones that precede it. As a result, millennials aren’t as likely to move out early, get married young, have children, and buy homes or cars. They’ve broken away from most of the essentials that defined the “proper lifestyles” of boomers.
Interestingly, many do want to travel, own homes, and have children. However, financial stability has become a critical factor in determining when and how millennials tackle these goals.
What These Trends Mean for Real Estate Markets
Unsurprisingly, these trends and statistics have impacted the way the real estate industry has to approach millennials. Offering a family home to a young couple in their mid-twenties might not go over as well as it did fifty years ago. The focus has changed.
Renting Vs. Buying
Statistically, millennials are earning about 20% less than boomers did at the same age. As a result, these generation Y adults are much more likely to save their money than create significant debt for themselves.
The cost of living is another issue. Millennials are far more likely to rent in affordable, social areas, like this one in uptown Dallas, rather than buying a family home in the ‘burbs that’ll lock them in 40 years of debt.
Renting is so common amongst these adults that they’re sometimes referred to as “Generation Rent.”
Freedom to Travel
For millennials, freedom and the ability to travel is extremely important. In fact, statistically, Gen-Y members are more likely to start saving for their next trip rather than pay off their debt.
Being tied to a home that needs maintenance and regular payments isn’t very appealing to this generation. As a result, they’ll prefer to rent rather than buy, or choose to live abroad permanently.
Some choose to live in mobile manufactured homes. These aren’t your average parking metal monsters, though. Instead, the millennial’s “trailer park” is picturesque, social, and well-kept. There are even beautiful modern mobile homes that’ll put suburban houses to shame.
It has all the benefits of your average neighborhood, but also the added ones of affordability and freedom to travel whenever the desire strikes.
Environmental Factors and Minimalism
Another common moniker for millennials is “Generation Green,” and it’s an apt nickname. Gen-Y adults care significantly more about environmental stability and sustainable living.
They spent most of their youth hearing about these threats and issues, living and dealing with extreme weather, rising sea-levels, and GMO agriculture. Unsurprisingly, these factors have shaped how millennials look at their lifestyles.
Tiny, solar-powered homes are becoming a lot more prevalent as the focus shifts from big family houses to smaller, minimalist living. Some of the more creative millennials have taken to building lodgings out of almost everything, from containers to renovated trucks.
Gen Z is just as eco-conscious as Y, if not more so. As a result, tiny and environmentally friendly homes are likely here to stay.
Culture and Social Factors
Millennials care about social issues, activism, and taking actions that encourage change. As a result, you’re more likely to see young adults seeking out diverse, tolerant, and socially active neighborhoods and cities.
Cultural diversity is another important factor that determines whether a millennial will relocate to a specific district or neighborhood.
While several Gen-Y adults will travel abroad, many are just as willing to visit ethnic local spots. Popular choices include Little Sri Lanka in New York, Little Havana in Miami, and the Mahatma Gandhi District in Houston.
Real estate used to be seen as a valuable investment that anyone, from property magnates to the everyday homeowner, should make. However, the times have changed, and millennials aren’t so eager to jump on the mortgage train.
Current trends show that these young adults are more interested in saving their money and the environment than a large family home. Millennials are stuck with student debt and high living costs, more so than any generation before them. Cheaper, sustainable options are a more logical choice.
Freedom to travel and culturally diverse neighborhoods are also factors that a millennial will consider before buying or renting a home.
The message from these young adults are clear:
If it can’t adapt to their needs, they’ll find alternative lifestyles. If need be, they’ll completely exclude traditional real estate.