It's not all over-priced lattes and avocado for this underestimated generation.
Millennials are changing the game when it comes to the real estate market. With new priorities and lifestyles, this generation is redefining the way we think about homeownership versus renting. And now they have finally tipped the scale and brought their generation into a majority of homeowners at 52% owning their home vs renting. In a recent article published by RentCafe, the historic shift was brought on by 7 million Millennials purchasing homes in the last 5 years, more than triple the number added by Gen Z. With the latter generation being the last one left to be primarily renter-based, let's take a look at how the current market is influencing the generational shift.
With older homeowners having locked in historically low interest rates in the last 3 years, the outlook is grim for securing a new mortgage as current rates hover around 7%. Despite the speculation that Baby Boomers will be retiring and accounting for a significant amount of market activity, data shows that they are now retiring later and staying in their paid-off homes as the current rates and prices are making it unattractive to move now. Additionally, with the drastic change in the workforce turning into remote working opportunities, Millennials are more likely than older generations to take advantage of this and make bigger moves to find affordable housing. And despite steep inclines in the housing market prices, rent prices have gone up just as steeply which is aiding in the desirability of ownership.
Among the US major metros seeing the fastest rising Millennial homebuyers is Austin - with the generational home ownership doubling in the last year. However, Richmond, VA wins out of the top 50 metros for the highest jump with a 234% increase in Millennial buyers in the last year.
Have questions about the Austin real estate market or how this all could affect you? Reach out to us at Team@SistersSellAustin.com
- Frankie & Danielle Hajj,
Grossman & Jones Group, #1 Team, Compass ATX 2021
