For some time, the millennial generation has been known to be a “subscription-based” demographic. For example, gone are the days of purchasing music for this generation & instead they simply subscribe to a music streaming service. With more importance being placed on experiences as opposed to ownership, many millennials have historically opted to remain as home renters as opposed to homeowners. In doing so, this has provided the opportunity for more flexibility to travel or relocate more easily. However, we are starting to see this change in the real estate market.
Real estate trends
Millennials accounted for over half of all home-purchase loan applications in 2020. Given the size of this demographic combined with their eagerness for home ownership, many economists are predicting continued strong demand in the real estate market as a result. According to data from CoreLogic, millennials made up about 67% of first-time home purchase loan applications and 37% of repeat purchase applications between January and August 2021.
In addition, the pandemic and resulting push for more space combined with increased popularity of remote working conditions has contributed to strengthening housing demand from millennials.
Buying a home is still more affordable for many first-time buyers than it was for older generations due to higher incomes and falling mortgage-interest rates. The shear size of the millennial demographic in the U.S. combined with increased appetite for real estate should result in a strong housing market moving forward.
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!