Economists and real estate experts have wondered in the recent years: why aren’t millennials buying real estate? In a surprising turn of events, new studies and data show that this generation is actually starting to dabble in real estate.
According to Zillow Group Report on Consumer Housing Trends released earlier this year, 42 percent of home buyers in 2016 were millennials. Most importantly, they were the largest demographic, with most of them buying homes for the first time.
Other findings indicated in the Zillow report also included one interesting tidbit: 50 percent of millennial homeowners have settled down in the suburbs, in contrast to what was originally expected of them. Let’s list down a couple of reasons why more millennials are buying and moving into the suburbs.
Millennials are discovering that there is more to life in the suburbs.
Compared to purchasing real estate in the city, homes in the suburbs offer a wide array of features millennials want. Contrary to popular belief, most of them still want the “traditional” stuff: a great neighborhood, easy access to the city, the sense of community, as well as walkability. Millennial home buyers who are also starting a family will want to live somewhere safer and with better schools.
All of this can also be found in a city, but real estate prices greatly differ. For example, it won’t be surprising to find that you can purchase a spacious three-bedroom home in the ‘burbs for the amount you’ll pay for an urban apartment.
- A lot of millennials work in the city – Living in the suburbs close to the city gives millennials the right balance between urban and suburban living. It certainly helps if the town offers great public transportation offers to ease the commute to and from work. It’s also important to consider that millennials have more flexible work options, with a great number working from home.
- Walkability and space is important – Millennials like to walk around and like the convenience of being near a wide array of establishments, from shops to restaurants. In addition, millennials want to live in communities that offer outdoor recreation– something you don’t often get in urban areas.
- Millennials consider resale value – A lot of millennial home buyers purchased homes for the short term, considering the possibility that they might move back to the city once their children have left the nest. It’s in stark contrast to the practices of the generation that came before, when home buyers would buy real estate for the long term, thinking about the property as their home forever.
- A lot of suburbs offer urban conveniences – Although accessibility to a big city is a must for a millennial looking for a home in the suburbs, it becomes less important as more millennial home buyers explore the community they’re interest in and find that a lot of suburbs have thriving commercial and downtown districts.
Learn more about the latest real estate trends by browsing our blog. For more information about real estate in and around Chicagoland, get in touch with us at (847) 971-0674 or rjames@askunique.com.