Will Millennials ever buy homes
Will millennials ever buy homes? What we have behind us is a home. Hey, Millennial, this one doesn’t have a basement, so I’m not sure exactly what’s going on. So with this two story, there’s probably a room upstairs where your classic millennial will be living, and Inman wrote an article about this one. So let’s go ahead and see what they have to say.
We’re going to chat this link in for you, and we’re going to discuss it in this classic sense. Me as Mike Millennials and I have a great relationship. I am super, super tight with with millennials and allowed to discuss all things related to them.
They gave me express privilege to be able to go and do that, and I feel very, very lucky and fortunate for that. So as we kind of go through this article, link again is going to be in the description. We’re going to scroll down just a little bit more.
And what we’re going to see is there’s still a lot of people that are living at home. I’m going to go ahead and take charge of this and scroll us down here a little bit. They have a couple of points and I’m going to kind of hit on and let’s see here.
All right, so the characteristics of millennials, most men are in late twenties now, and some are in their early thirties. They came to age during the Great Recession, so congratulations to them. They definitely have some things and they’re thirty seven percent of all the home buyers now. That’s a big percentage that it actually makes up. And there we go, and they see that they are depressed.
So this is what they kind of look have seemed depressed wage growth over the last decade. I’m going to say that that might be in their mind of what they see, if they see that. I would completely disagree with this. Wages are going up about as fast as you can and the economy’s on fire and that’s going to be on you. If your wages are down, they carry significant student loans, probably should have finished college on time and you would have been fine.
You should have been paying on it just like everyone else has before you and you had been OK. Your parents probably paid for a big part of it and or most of it, and all you have to do is pay back the stuff, the money that you spend on beer and you should be fine.
Your Cheetos fund that also does have to be paid back eventually. With millennials, adulthood coincides with a period of under building, meaning there is a low supply issue. Yes, there definitely is. And I think actually the problem is going to be even greater because there is going to be a time when they when they do decide to get out and start moving and there’s going to be a ton a ton of demand that goes along with it. So I’m not doing this just as a comedy piece.
I do believe that there’s actually some stuff underlying what’s going on here, places that millennials like and destinations that they do enjoy as boys in Austin. So those are some places that have seen huge, huge growth and also seen huge price appreciations. So it’s going to be more expensive to live there, dramatically more expensive. Remember, we saw Boise, we talked about that specifically, and that state was up thirty five percent as far as prices go.
So imagine how much it has went up just in the most expensive city within that area or the fastest growing one within that area. So prices are going to be way, way up and it is going to be a little bit more difficult for them to do it now, the distance between the home purchase and their previous residence. So they are tending to move further then other people have.
So if you’re selling a home to a traditional buyer that’s buying their second home or third home or anyone of those things, they tend not to be moving as far as they’re moving across the street, across town to a different neighborhood, a bigger house, a smaller house, a retirement type area. But what we see is that the millennials tend to be moving much, much further than than others might.
So you might be dealing with them over some different applications over face time, over whatever that is, they might have to be driving. You’ll be making a bunch of different things as it relates to to the millennial in general. Ok. So millennials prioritize convenience over other things. They are looking for ways to offset their mortgage, including renting out part of their properties.
So that’s interesting. It’s a concept that I never kind of thought about or considered with renting out part of our house. But that’s apparently something that millennials are considering is to have a roommate as part of it. So if that does become a real thing, then you know, maybe that takes in combines two groups together because I think they are getting married later.
There is a whole thing that are they getting married? And you know, what is population growth look like in the future? And how is that coupling going on? And what does that look like? And if they’re not going to be buying their own place in co habitating together and in those things, then it takes a lot more buyers out of the market.
But imagine if they each buy their own homes and don’t get married and start doing that. What is housing look like going forward? So there’s a lot of decisions that are going to go on a lot of different ways that we could actually look at transitioning here.
So we’ll kind of go back and hit on the those last two points. So Omkar, maybe we’ll get off that screen in my last two points would be imagine if OK, so just imagine this one thing. If millennials don’t get married at the same rate they did in the past, and I believe that to kind of be the case. So if? They don’t, and they tend to be more single single families like a single person in the household.
Then imagine how many more homes it will need. But imagine how differently they would look if they were only for one person versus a whole family. All of a sudden, you’d have this whole housing revolution, right? And we would have to dramatically change how big places are, where they’re located, what type of facility this is.
And then imagine if they start to couple up in different ways that maybe people aren’t getting married at the same rate, but they’re starting where they would live together in different places, but buy a home together.
Then would you go more towards a home that is designed totally different than their traditional home, where there’s one primary bedroom in a bunch of secondary bedrooms? All of a sudden?
If that happens, imagine how much you would have a primary bedroom on this side of the home in a primary bedroom on this side of the home, and it’s almost like two homes kind of put together and shared to make bigger, but it’s like two small homes jammed next to each other is maybe how that goes.
So millennials are actually going to be deciding almost the future of all housing here in the United States of America. And we will see what they decide. So we’ll report back on this one really soon. Millennials, I’m looking forward to the ride. Thank you, guys.
Episode Links
Great Recession , Inman, Millennial, Mike Acquisto , TNT
