(PRWEB) December 04, 2012
An anomaly in real estate statistics demonstrates a new reality about the under-30 demographic known as Millennials, according to CampusAuction: Bid for a Better World (http://www.campusauction.com).
While home purchasing has increased this year, after a disastrous period associated with the 2008 economic collapse, people in their 20s have generally not been participating in the spike. The number of young people obtaining a first mortgage declined about 50% over the past decade.
Some commentators speculate that Baby Boomer parents are having their own economic challenges, including saving for retirement, and therefore cannot help their Millennial kids buy their first home. Another theory is that young people are getting everything they need and more through the amenities available in apartment complexes with swimming pools, gyms and extra space when needed. The most elaborate theory is that there is a fundamental shift in human values: the idea is that young people represent a generation that is afraid of commitment and wants the freedom that renting offers.
More likely, having seen the almost unthinkable happen when property values plummeted over the past five years, Millennials may be the first generation in memory to look askance at the idea that investing in real estate is a guaranteed bet.
“Millennials are different, yes,” says CampusAuction CEO Eyal Lichtmann. “But Millennials are not the entirely new species of Homo sapiens that some commentators are making out. Millennials will do everything that previous generations have done — move out of their parents basements, buy cars, get married, or at least shack up, have kids, develop careers, save for retirement, and redefine old age. They will just begin each of these steps at a later age than previous generations have done.”
While property developers are rushing to meet the demand for rental apartments, in the short-sighted belief that Millennials will spend the next 50 or 70 years of their lives in multifamily complexes, it is a safe bet that, as soon as the first kid comes along, the new parents will go rushing out for bigger cars and homes with fenced backyards, says Lichtmann. The reality isn’t that Millennials are going to avoid the same major life events that previous generations have experienced, he says, they will just do them a few years later.
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