'The tired old story that Millennials are unemployed and living with their mom and dad — those circumstances have changed quite a bit in 2014.' - NAR Economist Jonathan Smoke
Minneapolis, Twin Cities Minnesota (PRWEB) December 06, 2014
Minneapolis is nabbing the attention of Millennial home buyers according to Realtor Magazine's latest predictions for the top 10 real estate markets in 2015 (dated Dec. 4, 2014). Millennials find more affordability for houses in the Twin Cities than in other regions as they plan on expanding their families. The number of younger Millennials leaving their parents’ basements and establishing a new home is rising at a faster pace than many foresaw. This trend opens new opportunities for Twin Cities home sellers and builders.
"The buoyant Minneapolis economy is drawing some of the nation's professional Millennials who are relocating to the Twin Cities for jobs, culture and affordable housing," says Jenna Thuening, owner of Home Destination. "Eagerness to own a home and the discipline of saving for a down payment are paying off; currently, more Millennials are in the process of buying their own home. The Minneapolis region can anticipate higher numbers in 2015 household formations by younger residents."
Once again, rankings place Minneapolis in the top 10 cities for Millennial homeowner growth across the nation. Realtor Magazine made their pick of leading real estate areas and announced which housing markets they believe will be ahead in 2015, placing Minneapolis real estate in the top 10. Its diverse economy and better rate of home affordability puts Minneapolis in the national news once again. The Twin Cities metro area continues to show low unemployment and is setting new benchmarks in job creation in 2014. Twin Cities Millennial homebuyers are finding the lift in household income they need in order to obtain a home loan.
“Housing is driven by life,” said Jonathan Smoke, the realty site's chief economist. “And [Millennial members of] the largest generation in history are coming into their own.” The median age of the burgeoning Millennial population is 24; with more established Millennial generation buyers being between the ages of 25 and 34 and more ready to buy.
Recent research predicts real estate market activity, with a close watch on Millennial home shoppers. A whopping 86% of Millennials surveyed indicate that their decision to purchase a home was because they had a change in their household status, size, or plans to become a household raising children, according the home shopper survey of 1,236 participants by BDX, a joint venture between Move Inc. (the News Corp. subsidiary that runs Realtor.com), and Builder Homesite Inc. Nearly 32% of Millennial homebuyers said they intend to have children, and 18% said they have already stepped into parenthood.
The combination of the job market rebounding and how affordable homes are makes the 13 county Twin Cities metro a hot spot for Millennial real estate buyers. Minneapolis is the second-largest market in the nation for Millennial home buyer activity. It is becoming clear that due to their size, Millennials will drive Twin Cities housing for decades. Minneapolis home builders are seeing strong demand in new construction to meet the increased demand for affordable single-family homes.
Millennial generation home buyers favor the Twin Cities because of its robust job market. Employment prospects are higher in the Twin Cities region than many metros of similar size, making relocating to the Twin Cities an appealing opportunity for Millennials. Jobs for individuals less than 35 years old are being created at a higher rate this year, Smoke said. “The tired old story that Millennials are unemployed and living with their mom and dad — those circumstances have changed quite a bit in 2014.”
“We know that Minnesota families really haven’t seen the sort of economic benefit or surplus in their own family budgets, and this is something that’s really concerning,” said Rep. Kurt Daudt, R-Crown, who takes over as House speaker in January. The article Minn. House: Republicans Take Control on MPR News (dated Nov. 5, 2014) discusses the new leadership's intent to make a difference in housing, lower taxes and fewer tight regulations. This may make the needed difference for many would-be Millennial homebuyers.
"Micro-housing, studio apartments and condos are great inexpensive choices for Millennials living in the Twin Cities, as well as starter single-family homes. New construction in 2014 has paid heed to our youthful population, as more suitable housing is developed to meet the demand," adds Thuening.
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 Millennials seeking to buy their first home to individuals moving-up to a larger luxury home, Jenna Thuening has the real estate experience and acumen buyers and sellers benefit from.