Posted on Feb. 5th, 2016
The rates for Boston real estate ownership are the lowest in 48 years. There are several reasons for this, such as a strong rental market and there’s not as many homes being built. One thing that isn’t the case of this problem is the Millennial population.
Millennials are those aged 34 and younger and they are not buying homes currently. A study of Millennial trends by the National Association of Realtors shows that 64% of Millennial home buyers are married couples and that 14% are unmarried couples. There’s 8% single males and 12% single females. The last 1% is other combinations.
This age group is also working more than in the past as the rate for unemployment is down to 5.3% as of June, 2015. The rate in the last year was 6.1% in June. This age group is moving away from rental properties and buying homes. There’s 49% buying homes in the suburbs, 21% are buying in urban areas, 17 is smaller towns, 13 are buying in rural districts, and 1% in resort areas. This is more diverse from those aged 35-49 who are buying their homes in the suburbs.
Millennials are also using the services of real estate agents to help them find homes. Studies shows that 90% of them are using the services of agents to help them get the home deal they want. There’s just 5% using a builder and 4% buying directly from the previous home owner. The dip in real estate agent use is from Gen-X, or those aged 35-49. In this age group 88% used a real estate agent. Millennials are buying into the Boston real estate market and getting homes. Let’s look at this group a bit more closely.
For Millennials, the Boston Real Estate Market is Changing
Millennials are preferring to walk over driving according a recent study. They are looking to live within walking distance to shops and restaurants and have a short commute to their work. They like alternative transportation means like biking and use the public transportation system regularly. This generation favors walking more than any other generation.
Millennials have a disinterest in single family homes in the Boston area. They want to walk to recreation services and to work. People that took part in the survey stated that they want small yards and that their place of residences should be close to restaurants and shops. They aren’t looking for larger yards and where there’s a need to drive to get to amenities.
In America. 60% live in detached single-family homes, but one in four of these want to live in a neighborhood where walking is favorable. The job market is improving, but Millennials are living at home with parents at a greater rate since the Great Recession.
Millennials tend to have a tough time getting careers started, saving for retirement, and starting families. These struggles have carried over into home ownership too. Higher education costs, less high-paying jobs and other factors have taken their toll on Millennials.
In the Boston real estate market, many Millennials aren’t in a rush to own a home. The economy has changed as we have shifted to a connection-based economy from a knowle3dge-base done. People work into their 70s, 80s, and longer. Millennials aren’t buying right now, but they may be ready in the future.