Long considered “the rent generation”, millennials have become the largest driving force in the real estate market. A recent HarrisX survey conducted by Realtor.com set out to determine the main reasons why millennials want to own a home. The survey included more than 800 prospective home buyers who plan to purchase their first home in 2021.
The biggest reason for the desire in home ownership for millennials was no different than what has been observed for prior generations: The American Dream! Of course, The American Dream is becoming more difficult to find these days, particularly for younger first-time home buyers.
Being a homeowner and building equity
When asked, “Why are you planning to buy a home?” The top responses were:
- 59%: “I want to be a homeowner.”
- 33% – “I want to live in a space that I can invest in improving”
- 31% – “I need more space”
- 22% – “I want to build equity”
Of course, finding a home for has been a challenge for many of these first-time home buyers. The survey found the following:
- 43% have been searching for a home for more than a year.
- 33% have been in the market between six and 12 months
- 14% have been searching for three to six months
- 10% just entered the market in the last three months
A well-documented characteristic of the millennial generation is that they tend to be a subscription-based demographic. Whether it is subscribing to entertainment services such as Pandora, Spotify, or Netflix, or simply focusing more on life experiences as opposed to possessions, many have assumed that millennials would simply remain as “the rent generation”. With this said, they have quickly become the most dominant force in the real estate market. Although many in this demographic have delayed home ownership, they are entering the market in higher numbers now.
Interestingly, many of the things that are drawing millennials towards home ownership are the same items as for prior generations. If you are considering selling your home in the near future, this is an important demographic to consider marketing towards.
Are you in South Florida & looking for assistance with buying or selling real estate? Contact Live South Florida Realty, Inc. today!