Chances are, you’ve read, or at least seen the headlines for, those articles that say things like “Millennials Are Killing The Home Goods Industry”, along with many other articles that say exactly the same thing.
You see, Millennials are reshaping many industries, due to the presence of new technologies, new ways of living, and new beliefs and ideals that are coming to dominate much of our culture. This isn’t a good or bad thing, it is simply the nature of every generation, for every generation brings with it its own share of changes and transformations.
Right now, the Real Estate market is undergoing a transformation that is caused by a number of factors. One of which is the presence of The Internet, which completely changes how Millennials – or anyone, really – go about finding homes that they are interested in buying, just as it changes how they go about selling their own homes. Another factor that must be mentioned is the fact that, due to the tumultuous economy that we currently have, when Millennials buy houses, they aren’t doing so in their twenties, but in their thirties – usually their mid-thirties, statistically. However, as with every transformation that occurs within these very old, but very necessary, industries; they come with their own set of benefits and their own set of flaws that aid in creating less than desirable changes.
People don’t buy homes the same way anymore. Going online is faster, easier, and far more effective. Especially when you, as a home buyer, know exactly what you’re looking for. The majority of Millennials do know what they are looking for, and they go online to find houses that match up with the requirements and specifications that they have. In doing this, they reduce much of the wandering and searching that often accompanies the search for a good home.
Just as people don’t buy homes the same way anymore, they don’t sell homes the same way anymore. This was a Millennial “invention”, as it were, and it came from the rise of The Internet, and the ease and efficiency that comes from using online services and platforms such as Zillow to post pictures and information, and to have potential home buyers contact you, with absolutely no hassle.
All of this comes from a desire to streamline the entire process, and to make it faster and easier for people to buy and sell homes. While this may be a less-than-welcome change to some Real Estate investors, this transformation is here to stay.
Millennials in their twenties aren’t buying many houses, and this is due to the fact that housing is very expensive, and most Millennials don’t have a lot of money – not until they’ve spent more time in the workplace – and because they are focused on putting the money that they are earning towards a very specific kind of investment. When they do buy homes, they don’t go for “starter homes”, they go for big, standalone properties. Properties that would easily support a family of five or six. As you would expect, these homes are often more expensive, but most Millennials have the money, since they often have roommates or live in apartments until they are ready to buy the right house.
Ultimately, the Real Estate Market is undergoing a transformation. The whole process is being streamlined. Many Realtors and Real Estate Agents are having trouble keeping up with all of these changes, and are losing money because of it. And, of course, the frequency of homes being purchased is less than it was twenty-years ago, but that does not mean that the Real Estate Market is dying. Instead, it is adapting to the needs and wants of a new generation that has new tools, new technologies, and new desires. To keep up with these changes, consider what you have read, and focus on making your own services and your own investments as easy and effortless as possible, while embracing the many online tools that have come to the forefront.