Did you know? The 2021 housing market was the most lucrative and competitive ever recorded in U.S. history. In fact, home prices soared nearly 20%. This yearly increase even exceeded the 14% rise observed just prior to the housing collapse of 2008. More millennials entering the housing market has resulted in a record-level of competition for homes. Many of these buyers are willing to do whatever it takes in order gain a competitive edge in this competitive market. We discuss the latest millennium home buyer report below.
The millennial home buyer report
Millennials are the U.S.’s largest cohort of home buyers, thus represent a significant portion of the market. These buyers are eager to enter the competitive housing market.
- 46% of millennials expect to max out their housing budget.
- 1/3 of millennials plan to purchase a home that costs more than $405,000—the median U.S. home price.
- 90% of millennials would buy a house sight unseen.
- One in six millennials would be willing to offer $100,000 or more above asking price for their dream home.
- As millennials spend less time at home, they want smaller homes—1,700 square feet on average, compared to 2,400 square feet a year ago.
- 31% of millennials plan to live in their homes for less than five years.
As the largest cohort of American home buyers, millennials will continue to be a driving force in the housing market. Interestingly, millennials appear to be more willing to buy fixer-upper homes than baby boomers. This dynamic could play out well as more baby boomers decide to sell their homes. Of course, many millennials are likely to face obstacles such as college debt. This may continue to present a challenge for these buyers with home prices continuing to rise. If you are considering listing your home for sale, it is important that you pay attention to this demographic of home buyers. When marketing your home, you may also want to stress millennial-friendly features. For example, versatile or multi-purpose rooms can be a highly desired feature in the home.
At Live South Florida Realty, Inc. we have assisted many clients with their real estate needs. Are you looking to buy or sell a property in South Florida? Now more than ever, it is critical to have a qualified real estate team and the proper search tools behind you. Live South Florida Realty, Inc., has been a leader in the South Florida market for many years. Let our team of professionals assist you with buying or selling your piece of paradise today! In addition, our recently launched “Florida Home Search” app is now available on the Apple App Store and Google Play Store. With real-time MLS feeds, this app lets you set your own alerts to notify you as soon as a property meeting your needs hits the market. Furthermore, it will also let you know of recent closed sales in your area so that you may be even more educated on the market. Be sure to download this app for your smartphone or tablet today!