Millennials are young and just getting started. Their education, diversity, tech savvy and desire to succeed will be vital to the economic success of the United States. We’re on the cusp of seeing the impact Millennials will have. ~ Realtor.com
Minneapolis, Twin Cities Minnesota (PRWEB) November 18, 2014
Real estate in the Twin Cities is about to change at a more dramatic pace, driven by the impact potential Millennials home buyers will make. Write-ups by Realtor following the national conference offer insights on how Millennials are the fast track home buyers that are shaping housing trends.
"Millennials' lifestyles are quickly changing and adapting to keep up with the growing technology market that is dominating our world. Found to be more tech savvy than other generations, both their huge volume and quickness to use the Internet will make Millennials the fast track home buyers in our future," says Jenna Thuening, owner of Home Destination.
"This generation of people, born between 1981 and 2000, is our largest — made up of approximately 90 million people, says Jonathan Smoke, chief economist for realtor.com®. "In fact, they’re just getting started, and their sheer size will drive activity in housing for decades."
Following the recent conference on the topic of Millennials and home buying, 3 Reasons Millennials Are Driving the Housing Market was posted on November 14th, by Jonathan Smoke of National Association of Realtors (NAR). They are:
1. Millennials Are Moving On Up
2. Millennials Are Starting Families
3. Cost of Education Will Pay Off
If changing Minneapolis real estate demographics follow the national trend, then local markets should expect the approximately two-thirds of all new households created during a span of the next five years will come from this pool of homebuyers - maybe more, as Twin Cities Millennial generation buyers show a preference for the Twin Cities.
Job creation will favor them. Their economic opportunities are strong. And they’re planning to start families, which increases the desire to purchase a home. The latest indications coming from NAR stir up visions of record numbers of Millennials actively buying homes. They are quick to proactively become well-informed online and learn about what it will take to qualify for home financing and Twin Cites 13-County housing market conditions. Collectively, they will drive housing trends for at least the next 20 years. They may rival the force of retiring baby boomers in the Twin Cities for who is to become the strongest economic drive in housing market.
The average student residing in the Twin Cities, owes $30,000 in debt upon completing college. Short-term, 70% of students with school debt owe less than $25,000, according to NAR's fall report titled Top 10 Fall Markets for Millennials. This amount is manageable as better jobs in the Twin Cities have opened up opportunities for higher earnings.
While this amount of debt may seem daunting, it also makes Millennials the most educated generation we’ve ever had, according to Smoke's assessment. This bodes well for them in their future. While their home buying power is delayed into their late 20’s and early 30’s, they will be better set up in the future to own a home. Over the next twenty years, we will see this generation shape the economy with a higher educated populace.
“There is plenty of opportunity for Millennials looking to get into the market in the next few months,” believes Smoke. “Not only are first-timers more likely to be able to afford homes in these areas, less competition in these markets means they are more likely to have their offers accepted.”
More insights can be gleaned from the report. The biggest reason that Millennial age buyers do choose to buy a home is due changes in their family structure. This may include marriage, children, or in the beginning stages of planning a family. Men and women in this age group are also delaying the birth of their first child which causes a definitive cause and effect in the home market. Millennials also were more likely to say that a stable or increase in income was a large reason for when they started shopping.
"The number of younger individuals favoring the Twin Cities housing market is higher than the national average, so we have reason to anticipate that, indeed, Millennials sheer size will be a powerhouse in the Twin Cities housing market.
About Home Destination - Twin Cities Real Estate:
Home Destination offers a loyal and committed real estate professional service that personally handles all of the details of selling or purchasing homes in Eden Prairie, Minnesota. Highly regarded by peers as a Minneapolis metro expert for over 15 years, gain a skilled representative as guide to make the best possible housing decisions. Helping all home buyer types, from individuals seeking to buy their first home to individuals moving-up to a luxury home, Jenna Thuening has the real estate experience and acumen buyers and sellers benefit from.