According to population projections released by the U.S. Census Bureau last month, the “Millennials” generation, also known as “Gen Y” is projected to exceed the massive “Baby Boomers” generation as the nation’s largest living generation. The Millennials are changing the face of marketing as we know it. Millennials who are between the ages of 18-34 are estimated to be 75.3 million, surpassing the projected 74.9 million Baby Boomers who are between the ages of 51-69. The “Gen X” population, individuals between the ages of 35-50 is projected to outstrip the Baby Boomers by 2028.
Millennials are a group of tech-savvy buyers who know what they want and are contemplating buying their first home in the near future. According to U.S News, Millennials now constitute 68% of first-time home buyers. Understanding this trend, real estate agents are shifting gears to accommodate this new wave of home buyers.
According to a recent Merrill Lynch retirement study conducted in partnership with Age Wave called “Giving in Retirement: America’s Longevity Bonus,” 81% of Millennials believe home ownership is one of the essential components of the American Dream.
The problem, however, seems to be employment – which is soon to be transformed. The most recent jobs report, although very disappointing, many economists have agreed the silver lining in the raincloud is Millennials. Chief Economist, Jonathan Smoke at Realtor.com, reported:
“About 33% of civilian jobs created over the last 12 months have been for the young adults who are most likely to buy their first home. This should help support continued growth in the share of homes purchased by first time buyers, as economic success has been influencing older Millennials to jump into the housing market this year.”
Chief Economist, Selma Hepp, at Trulia, in an article entitled, “Here’s what Today’s Job Creation Implosion Means For Housing And Mortgage Finance” from HousingWire.com agrees:
“Metropolitan areas with the lowest rates of unemployment are also the ones with stronger housing demand. Additionally, the faster rate of job growth among Millennials will continue to bolster both the rental and for-sale housing markets for an extended period of time.”
As Millennials enter the housing market in large numbers and take on an even greater part in the housing market, their inclinations are starting to form the way real estate agents focus on conducting their businesses in the future.