While it may not be apparent to everyone at first glance, everything we do is intertwined. From the clothes we choose to wear to the lifestyle choices we choose to make, everything is closely connected in the great scheme of things. A single decision we make leads to a result that will affect our next decision to a certain extent, and on and on it goes. That's why it comes as no surprise that the current real estate trends are also affecting the way we live our lives and the moves we choose to make (or not) and when we decide to make them.
With Millennials' coming of age and becoming one of the leading forces across all the markets, both the real estate industry and Millennials as consumers themselves will have to find a way to make peace with the recent changes in the way things work. Here, we'll explore some of the major real estate trends and see how they affect our decision-making and shape the way we live, in general.
While the previous generations, including Baby Boomers and Gen X, were more likely to purchase a property – rather than rent it, Millennials have a completely different approach. They are more likely to rent a property than to buy it. The reason behind this fact is that the majority of Millennials are heavily burdened with student loan debts that simply make no room for generating enough resources for any type of down payment. And even when they decide to purchase, Millennials are more prone to downscaling and are generally more interested in buying apartments than huge family homes. Now, the problem that arises is that both Baby Boomers and Gen Xers are also looking to downscale, but they have a far greater purchasing power than Millennials. This is probably one of the main reasons Millennials opt for renting a living space rather than buying one.
Contrary to popular belief, Millennials are actually more interested in living in quiet and peaceful areas than they are in busy city centers. Newer families are generally more prone to taking everyone's needs into account, especially when making such a huge financial decision. If you look at Australia, families there prefer city suburbs to house in the strict city center, as a result, estate house and land packages in Austral have become a far more popular option. Not only do these offer the peaceful and walkable neighborhoods away from the hustle and bustle of the urban city center, but they also include all the necessary amenities very close by. This means that both the parents and the children will have all of their needs met without one having to sacrifice for the sake of the other. Playgrounds, parks, schools, and kindergartens are as close by in suburbs, like restaurants, doctors and movie theatres are.
Aside from the fact that Millennials don't shy away from working hard and putting some real sweat into everything they do, they are far more educated buyers than previous generations. This means that, when buying pre-owned homes, they are more likely to take into account not only the price of the property itself but also all the costs of potential repairs and upgrades. Millennial buyers know where to look for potential red flags in a property and are generally more likely to point them out when negotiating the price. Additionally, thanks to the great availability of resources online, they are more likely to purchase a cheaper property and renovate it themselves. This way not only are they generally spending less money on a property, but they also get the opportunity to customize their living space to their liking.
Finally, Millennials are well aware of how it feels to be the new kid on the block. While there was a lot of talk about how this generation is entitled and spoiled, they certainly did cause some major changes in various market, real estate being no exception. With Millennials being generally better informed than previous generations it brought forth the need to make some serious adjustments in the way realtors market their offer. Not only that, but realtors nowadays are becoming savvier with finding the best possible financial solution for a client interested in making a purchase. This not only makes it easier for Millennials, but it also reshapes the industry for all the generations to come.
These were, of course, just some of the most notable ways real estate trends are affecting and changing the way we live. The way Millennials approach the real estate market and the way the market is shaping the way Millennials make decisions is, as mentioned before, very closely connected.