Millennials, America’s largest generation, are moving into the current housing market and changing the home buying trends. As expected, rising real estate prices, higher costs of living, and other socio-political factors play into the new home buying trends. Research shows that in addition to the higher costs of living, other factors play a strong part in the trends, including student loans, delayed marriages, and a rent culture that has been on the rise.
Millennials Say Big Cities Are Out
Many millennials cite affordability as the biggest barrier to homeownership. Homes in San Francisco, Portland, Seattle, Los Angeles, San Diego, New York City, Washington, D.C., and Boston come with high costs and the down payment needed to buy a home in these markets can spook away potential buyers.
So when millennials are ready to buy a home, they tend to turn to the suburbs for their first homes. Yes, the ‘burbs present millennials with the most attractive first-time buyer opportunity, according to the National Association of Realtors. Lawrence Yun, the NAR lead economist, says that as millennials start to raise families, they become more concerned with safe neighborhoods and good schools.
Another attractive feature of suburban homes for millennials is space. Homes with extra bedrooms, bigger kitchens, multiple bathrooms, and large yards for entertainment, pets and playgrounds are attracting millennials to smaller cities and suburbs. The rise of telecommuting and remote employment also contributes to millennials making a smooth transition from city to suburb. Many companies, especially in the tech space, offer employees the option to work from home either on a full-time basis or a few days a week. In short, living in the suburbs no longer requires the constant commute that it used to.
Where Are Millennials Buying Homes Then?
The big cities are out and there’s a whole new wave of up-and-coming landscapes where millennials are gathering. According to Fortune, the top places millennials are buying homes include Salt Lake City, Denver, and St. Louis. A boom in available jobs, small businesses, low-cost housing, increasing diversity, and beautiful landscapes are contributing to millennials redefining cool in forgotten parts of the country.
While we saw many millennials moving to big-time cities like Seattle, San Francisco, and Portland over the last decade, we are now beginning to see many millennials move to the suburbs and smaller towns of America.
Thinking about moving? Check out the most expensive and affordable markets in all 50 states.