Millennials have received a lot of press for any number of reasons. However, their real estate activity (or lack thereof) has led to a lot of misconceptions about what this young generation is looking for. This is a shame because it leads to stereotyping that doesn't always line up with the truth. It's time to separate fiction from fact when it comes to millennial home buying myths.
Millennials Don't Want to Own
It's true that, overall, millennials are renting property in staggering numbers in North America. However, it may not be for the reasons people think. It's not that millennials are against owning their own property. In fact, most would like to have a new Rutland South home in their name so they can watch their investment mature. However, with the economy in its current state, millennials need to be practical about their living arrangements. It's far easier to break a lease if they lose a job (or get a more lucrative career opportunity) than it is to sell a property.
Millennials Aren't Buying Homes
This myth very much depends on what area a person lives in. In some areas of Canada, millennial home ownership is actually on the rise. And what's more, millennials are more willing to live in smaller spaces to accommodate population growth in larger cities. Millennials today are, by and large, less concerned with material wealth than their older counterparts. This fact is largely due to the transient lifestyle referenced above, but it's worth noting when trying to predict which real estate will be in demand and why.
Millennials Do Things Differently
Despite the burgeoning technology and interesting fashion choices, millennials are more traditional than many people believe:
- They use real estate agents to buy and rent
- They look for neighborhoods with community spaces
- They can afford homes with the help of homeownership programs
These attributes are all very similar to that of the older generation, who wanted safe and pleasant places to both work and enjoy their leisure time.
These trends have been playing out across practically every sector of the industry, causing a lot of talk about where the market will go. Once people understand the general attitudes of millennials though, it should become clear that their needs aren't all that different than those who came before them. Like other generations, their habits are shaped by their external circumstances and personal priorities.