The National Association of REALTORS® has recently completed its long-running “Generational Trends” survey to provide intriguing information on the trends impacting home buyers and sellers by generation. Seeing how different generations approach the home buying process can help real estate agents better serve these clients and tap into these trends. Let’s explore some key facts and figures that this survey has revealed.
What You Need to Know about Millennials in the Current Market
Millennials now comprise a third of homebuyers in the market, and 92% of these “younger buyers” prefer to work with a real estate agent. The median length of a home to be listed is one week, and 17% of homes were sold in less than a week. Furthermore, 62% of listed homes sold in two weeks or less. It should also be noted that the selling rate has risen significantly since the pandemic.
However, there are differences between those considered the “older half” versus the “younger half” of the Millennial generation. Specifically, Millennials between 32 and 41 years of age and boomers between 67 and 75 years of age take more time in their home search than their younger half counterparts. This may be because the higher income of these more established professionals allows them access to a larger segment of homes, which essentially offers them greater selection to choose from when searching for the home that best fits their needs.
Other Factors That Impact Millennial Home Buying
As we watch these emerging statistics about the Millennial generation, other vital trends have also come to light. With the pandemic and more widespread adoption of work-from-home arrangements, geographic location has become less of a concern for some buyers. Consequently, people are looking for homes that exceed their needs without factoring in the driving distance to and from work. This opportunity gives buyers the freedom to expand their geographical search for the perfect home.
The low inventory and high demand of current markets also mean that higher prices dominate many markets. This has impacted how Millennials save to afford their first homes, resulting in social changes we can see across the generation, such as:
- Living with their parents to save money for a house
- Pausing student loan payments to aggressively save money for a home
- Pausing or stopping social activities, such as eating out or taking vacations
- Holding off on having children in order to save for a home down payment
How Can This Data Help You Succeed as a Real Estate Agent?
As a real estate agent, you can use this data to tailor your marketing strategy and improve your ability to serve potential clients. Understanding the rising trends and what potential clients expect from their agents is essential to your future success.