Real Estate Habits Of Millennials

The MILLENNIAL Economy USA What the Real Estate Industry Should Know about Millennials As the largest generation in U.S. history, Millennials will greatly impact and shape the residential real estate market, as well as housing design and development. They are the largest source of new demand for rental housing and first-time home purchases. MILLENNIAL profile Most racially diverse and educated generation: 44.2% -83.1M belong to minority race or ethnic group Born -1/4th or between 1981 - 1997 of the U.S. Population 18 - 34 61% YEARS OLD* LARGEST LABOR FORCE have attended -53.5M college PROJECTED TO BE 3/4 OF U.S. WORKFORCE by LIVING situation 2025 50% RENT 26% OWN DELAYING KEY LIFE MILESTONES 21% LIVE WITH FAMILY 3% LIVE IN STUDENT/MILITARY HOUSING like: Marriage Having children Homeownership 26% are married First generation of 66 "digițal nåtives" 99 raised with the Internet, social media, and smartphones home buyer characteristics MILLENNIAL Dominate home buying 32% REPRESENT 68% of first-time of U.S. housing market home buyers Median Age Median Income Typical (median) home purchase 29 YEARS OLD $76,900 1,720-SQ. FT. HOME FOR $189,900 84% view that as a good financial investment why are they waiting to buy? Excessive debt, rising rents, slow wage growth, tight lending environment, can't find home in desired price-range, increased college enrollment, delayed marriage/children 54% cite student debt as biggest obstacle to buying a home AVG. STUDENT DEBT FOR COLLEGE GRADS Independent living has declined WITH A BACHELOR'S DEGREE - $30,000 as more millennials Average credit score: 624 26 % LIVE IN THEIR PARENTS' JUST 4 POINTS ABOVE THE 620 MINIMUM REQUIRED НОMES TO OBTAIN A LOAN [Credit Karma] HALF found their agent through a friend, neighbor, or relative 90%. used real estate agent or broker to buy a home How did they search for their home? 68% 89% Used an agent only interviewed 1 agent 94% Used websites How did they find their home? Finding the right home An agent 31% 50% The Internet is the #1 thing they need agents to help with, followed by negotiating terms of sale and home price Most valued traits in agents honesty trustworthiness reputation 39% Desire to own a home TOP 6 REASONS 7% Want larger home FOR BUYING А НОМЕ 6% Change in family situation 6% Want home in better area 6% Affordability of homes 5% Job relocation or move 75% Quality of neighborhood TOP 5 FACTORS INFLUENCING 74% Convenient to job NEIGHBORHO0OD CHOICE 58% Affordability of homes 49% Close to friends/family 44% Quality of school district 88% Photos 83% Detailed info about homes VALUE OF TOP 6 46% Interactive maps WEBSITE FEATURES 40% Neighborhood info 40% Pending sales/contract status 36% Virtual tours 75% 11% 4% 3% What do they want in a home? Single-family detached home Multi-family unit Townhome Manufactured home Top desired features in a home Energy-efficient appliances Laundry Exterior Living Storage options Front lighting porch room room MOST IMPORTANT What kind ofhome do they want? FACTORS WHEN CONSIDERING A FUTURE HOME: 3+ bedrooms 2-story home Single-story home Split-level home • Cost of housing • Neighborhood safety • Proximity to work • Community 84% 52% 35% 12% Where do they want to live? 49% 21% 17% 13% 1% Suburb Urban area/city Small town Rural area Resort Half prefer living within walking distance of places like restaurants, shops, etc., and place high importance on commuting costs TOP 10 MOST& LEAST Affordable Cities for Millennials to Buy a Home San Jose, CA Detroit, MI • 2 San Francisco, CA • 3 Los Angeles, CA • 4 San Diego, CA • 5 Sacramento, CA • 6 New York, NY 2 Seattle, WA • 8 Riverside, CA Washington, D.C. • 10 Boston, MA Pittsburgh, PA Buffalo, NY 10. Indianapolis, IN Cleveland, OH 5 • Kansas City, MO Memphis, TN Cincinnati, OH 1 60 10 . 3 8 Birmingham, AL St. Louis, MO 10 • MILLENNIAL home seller characteristics Median HH income Largest share of married couples among sellers $94,400 88% First-time seller • Repeat seller TOP REASONS FOR MOVING 12% FSBO DISTANCE BETWEEN HOME PURCHASED AND HOME SOLD JOB RELOCATION BIGGER НOME 87% 15 MEDIAN MILES USED AN AGENT OR BROKER TOP 2 METHODS USED TO FIND AN AGENT: 45% 23% Friend, neighbor, or relative referral Previously used agent Other of sellers 72% only contact 1 AGENT which could mean leaving money on the table, since agents offer different rates and services 25% Competitively pricing home 21% Selling within specific timeframe TOP 5 THINGS SELLERS WANT AGENTS TO HELP WITH 16% Fixing up home 15% Marketing home 12% Finding buyer IMPORTANT FACTORS Fin choosing a listing agent 40% Reputation 20% Honesty and trustworthiness 14% Agent is a friend or family member 10% Neighborhood knowledge 16% Other Sellers are losing out on potential savings DIDN'T KNOW THEY COULD 23% NEGOTIATE THEIR AGENT'S Ready to buy or sell your home? COMMISSIONS AND FEES! To request your FREE QUOTES visit: upnest.com Agents Compete, You Win. TM AND START SAVING THOUSANDS presented by: UpNest Sources: pewresearch.org/topics/millennials census.gov/newsroom/press-releases/2015/cb15-113.html whitehouse.gov/sites/default/files/docs/millennials_report.pdf bloomberg.com/graphics/2015-millennial-affordability/table.html uli.org/wp-content/uploads/ULIDocuments/Gen-Y-and-Housing.pdf eyeonhousing.org/wp-content/uploads/2015/01/Home-Trends-2015.pdf 2015 National Association of REALTORS® Home Buyer and Seller Generational Trends Report *PEW Research defines Millennials as those born between 1981-1997, NAR uses 1980-1995 date range, and the U.S. Census Bureau defines them as those born between 1982-2000. DEVELOPED BY N NOWSOURCING