The Millennial Generation is Reluctant to Become Homeowners

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REMI's Mr. Nergarden releases tip to readers for possible sales dip regarding home sales to Millennials. The tips are being released now due to the timing of a upswing in the housing market.

Mr. Nergarden of Real Estate Marketing Insider issued some helpful advice to his readers about the low rate of home ownership among members of the Millennial Generation, and his opinion is that this may be difficult for home sellers looking to boost online house sales by selling to first-time buyers as there may be fewer buyers on the market, which may in turn affect realtor marketing. REMI was quoted as saying, "As the housing market improves we felt now was a perfect time to notify our readers and clients of areas that may be affecting their numbers in terms of advertising spend and actual turnover in sales. As the market improves we get excited, but still want to be analytical and cautious when it comes to where we put our dollars. If a demographic that on paper looks great is not buying. We have to ask, "Why?" This research is great information." reports that there has been a drop in the number of young people interested in buying homes. These young people, considered part of the Millennial Generation, are showing a marked contrast with members of the Baby Boomer generation, who were eager to become first time homebuyers. In 1980, 52 percent of people between the ages of 25 and 34 were home owners. By 2010, these numbers had dropped to 42 percent and the trend seems to be downward. The drop has been attributed to several factors. Even though home sales are rising, the fallout from the current recession has left these younger people with lower average wages, less job security, and higher unemployment, all of which have decreased the ability for Millennials to afford to become first-time homebuyers. Along with that, increased competition from investors and stricter lending standards make it difficult for young people to qualify for a loan. Finally, there is a trend among Millennials to seek after small, more urban homes than traditional suburban dwellings that require more maintenance.

The Millennial Generation is not strictly defined, but many experts are considering them to be anyone born from the end of the 1970’s until the mid to late 1990’s. The Millennials are also known as Generation Y, and are known for a high amount of tech savvy and a facility with communications and social media. This group has been hit very hard by the 2008 financial meltdown, and due to this, has experienced a certain amount of economic cynicism.

Baby Boomers have a stricter definition than Millennials as they are defined as those born between 1946 and 1964, or in other words, between the end of the Second World War and the beginning of Vietnam. The Baby Boomer generation was defined by a rejection of values held by prior generations. This group had a significant impact on culture, especially during the 1960’s.

Rutgers University is a public university that is older than the United States itself as it was founded in 1766, during the Colonial Era. It was originally a private college, but eventually became public. Rutgers has several campuses in different cities throughout New Jersey, although the main campus is found in Piscataway. Rutgers has many different degree programs and a well regarded center for studying the sciences.

Real Estate Marketing Insider today commented on the trend for those born as part of the Millennial Generation to be more resistant to the idea of home ownership.

About Real Estate Marketing Insider:
Real Estate Marketing Insider‘s main goal is to provide tips, analysis and strategies to real estate professionals. REMI is headquartered in La, Jolla, CA.

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