Believe it or not, an entire generation of homeowners is just around the corner. According to USA Today, Generation Y or "Millennials" comprise the nations largest demographic - over 90 million - much larger than even the Baby Boomers. Gen Y consists of Americans born between 1982 and 2001. Not to make you feel any older, but the oldest of the Generation Y constituents are now in their early 30's and are wanting to buy homes - lots of them. Just like 'the me generation' of the 1980's differed from their conservative parents, Generation Y real estate trends are also diverting from the tried and true 'norm' of the past couple decades.
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Generation Y Real Estate Trends
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Who Are the "Gen-Y's"
- They are highly educated, inquisitive and curious. They understand the real estate industry and tend to research more.
- By 2017, Gen Y will represent 44% of home buyers.
- They tend to be hip, stylish and social.
- They value homeownership as an investment.
- They tend to be frugal, having come out of school into a deep recession.
- They aren't impressed by traditional luxury.
What Are They Up Against?
- Years of being underpaid or underemployed due to the struggling economy has made it difficult to save for a down payment.
- Student loan debt is eating away at their savings capacity and debt to income ratios for loan qualification.
- Low housing inventory has kept many on the fence, waiting for the right time to buy.
What Turns Them Off?
- Energy Inefficient and wasteful homes
- Large Unusable spaces such as formal living and dining rooms
- Suburbs, McMansions and massive homes
What Do Gen-Y's Want to See?
- Smaller homes with flexible floor plans utilizing every square foot
- Larger kitchens in lieu of formal dining rooms
- Home offices in liew of formal living rooms
- Technology
- Energy Efficient Homes
- Urban, dense communities
Are you you a millennial? What do you look for in a home and which 'norms' could you do without? It'll be interesting to see where Generation Y real estate trends will go - we'll have to wait and see how powerful the millennials become.
About the Author: Jared Reimer is a native Coloradoan and an Associate Broker at Elevations Real Estate in Old Town Fort Collins. He’s a community advocate, business champion, blogger, leader, tireless volunteer, innovator, thinker and expert on all things real estate in Fort Collins and surrounding Northern Colorado. You’re likely to find Jared spending quality time outside with his wife, Kacie, and young son, Hudson, or sharing a beer or two with a friend throughout Fort Collins. Call or text Jared at 970.222.1049 or email him at Jared@TheCraftBroker.com