MILLENNIALS AND HOME BUYING HABITS
Everywhere you look, it seems people are writing about the home buying habits of the millennial generation, and the Chernov Team has never been one to show up late to the party (fashionably late, there’s a difference); so, we thought we’d chip in and contribute to the zeitgeist. Millennials are hitting the age where it’s “time” to settle down, start a family, and buy a house (if you’re not there yet, it’s ok – things are pretty rough out there, and we’re not throwing any shade your way). Curiously, most Millennials are moving out of major metropolises in favor of smaller suburban areas, but not for the reasons you might think.
At the outset, the differences between generations is generally overstated; Millennials don’t prefer suburbs to cities, they don’t prefer biking to driving, it turns out most Millennials are actually following a trajectory that is similar to their parents. Unfortunately, cities pose a unique problem – it’s nearly impossible to build new structures in major cities, and as a result, cities have not produced new housing at a rate that matches the demand (thus increasing prices).
The result is that most Millennials are forced to purchase homes that the previous generation has occupied – this is where we run into problems.
There is a two-fold problem for the Millennial homebuyer: (1) credit is just a tad bit harder to come by these days, and (2) designs from the 60’s isn’t particularly appealing. Tackling the credit issue first, Millennials don’t seem to be looking for that mega-mansion that tells everyone “hey I’m [expletive] rich!”, they seem to prefer smaller homes with an emphasis on being a walking distance from everything (go green or go home); but even if Millennials did want mansions, the cost is simply too high (which also forces them to look for smaller alternatives). To the second point, the era of crown molding, and Mediterranean architecture have come and gone, it’s simply not appealing anymore. Millennials seem to prefer open floor plans and clean lines over the ornate “archaic” designs of years past.
Ultimately, this creates a huge imbalance in the housing market because the Millennial demand for homes is high, but the homes that are available are not what they are looking for. If you are trying to sell your home, consider modifying your home to meet the changing preference – otherwise you may be stuck with your house on the market for far too long (which decreases value).
At the Chernov Team we understand that knowledge is power and knowing how to sell your home in an evolving market is powerful knowledge indeed. At the Chernov Team we know that whoever shows up to the table most prepared leaves with the most and the Chernov Team always leaves the table with the most.