While it used to be uncommon for a person under the age of 30 to own a home, particularly as a single person, Millennials, also known as Generation Y, are showing every indication that they are bucking the old trend. More of them live with their parents longer, in order to save money for that big investment. This group of 77 million young people (born between 1980 and 2000) is even larger than the 76 million Baby Boomers who dominated America’s cultural shifts for the past 40 years.
According to a study by Lachman Associates for the Urban Land Institute, more Millennials are planning to become homeowners by 2015. Thirty-six percent of the 18- to 32-year-olds surveyed already own homes, and 67 percent plan to purchase one in the next four years. And interestingly, this generation seems happy with their current location. Most respondents want to live in places that are close to their families and like those where they grew up.
The other criteria for Millennials’ future homes are:
- Purchase price
- Interior space and square footage
- Building security
- Eco-friendly features
With housing prices and mortgage rates still low, incentives for first-time homeowners, and the opportunity to save money while living with family, Millennials are in the ideal position to seek homeownership. Those of us in the home building industry need to recognize that this generation of homeowners is different than their parents. They are more technically savvy and do their homework, which is much easier because they access their networks and online resources. Plus, they are more willing to relocate so up-and-coming areas will be more appealing.