If you’re a millennial and thinking of buying a house, 2017 maybe your year.
To me, home buying is one of those mystical things that people who don’t live in New York City do.
On my Facebook feed, I watch new homebuyers the way the way I do Olympic figure skaters – so majestic, so impressive, so never going to be me.
But, for all you readers who don’t live in New York (or who make a whole lot more money than I do), home buying might be on your list next year.
At least that’s what the data says…
According to a survey by Zillow, more than half of all homebuyers are under 36 years old.
As the real estate industry works to capture the demand of this new home buying demographic in 2017, we can expect to see some major shifts. After all…
I don’t need to remind you – millennials have a lot of debt. The average student debt has nearly doubled within the millennial generation.
If you’re turning 30 this year, and you have a net worth higher than $2,000, you’re beating the average.
What does this mean for millennial homebuyers?
Reluctant to take on more debt, affordability will be a top priority when house shopping.
Millennials are also wary of rising interest rates, which could be a big factor for prospective home buyers in 2017.
Let’s be honest – the real estate industry is anything but cutting-edge. It moves slowly, is heavily dependent upon paper and refuses to adapt to the demands of digital users.
And realtors are not exactly the agents of change. Research shows that the average realtor is a 53-year-old white female. So, basically, your mom. (No offense, mom).
Side note: a friend of mine recently told me about buying a house in Idaho, where online search doesn’t even exist. The only way to hear about properties is to get on a realtor’s email list. Talk about job protection…
Well, in 2017, all of that is going to change.
Millennials want to work with realtors who are digitally savvy, accessible by text and happy to serve as experienced guides through every step of the home buying process.
A long-standing myth in the real estate industry is that millennials only want to live in cities. But it’s just not true.
Research shows that 50% of millennial homebuyers want to live in or near the suburbs. Their top reasons are safety, privacy and space.
Here’s the rub – millennials expect a different kind of suburbia than their parents had.
They want to be within walking distance of entertainment. They want accessible transit options. They also aren’t impressed with the McMansions of traditional suburbs. They want modern, minimalist living spaces.
In 2017, expect to see Suburbs 2.0. The same community feeling but with key urban perks. And houses that are designed specifically with millennials in mind.
Thinking of getting out of the city and into the ‘burbs for your first home buy? Check out what starter homes look like around the world for inspiration.
And start saving up – 2017 is just around the corner!
Related Reading: How to Save Up for Your Next Big Purchase