It may be hard to believe, but half of the current home buying market is under 36-years-old. If fact, millennials between the ages of 18 and 34 make up 42% of home buyers for the entire real estate market. Understanding this new pool of buyers is key to selling your Austin, TX condo quickly. There are many assumptions and stereotypes about the up-and-coming generation, and while some of those characteristics may hold true to home buying, some are quite off-base.
Rent Longer, Buy Pricier
A study released by Zillow that analyzed 13,000 homeowners, buyers, and sellers, found that two-thirds of millennial home buyers that about reverting to renting at some point during the house-hunting process. The “adulating” generation generally leases a home much longer than generations that came before, but when they do purchase a home, they do so at a loftier price range. While Baby Boomers were content with a starter home price tag, today’s 30-something spends a median $217,000 for a home. The spending of today’s home hunters is more than that of the Boomers but roughly 11% less than the still emerging Generation X. Not surprisingly, the higher mortgage isn’t getting today’s buyer any more home than previous generations, as the median millennial home is 1,800 square feet.
The willingness to step into a higher price range and stick with less space means an Austin condo for sale is the perfect fit for young professionals.
Millennials have a broader diversity within the home buying group than all homeowners across generations. Of the 30-something homeowners:
- 66% are white
- 17% are Latino or Hispanic
- 10% are black
- 7% are Asian or Pacific Islander
Diversity isn’t as strong across all homeowners:
- 77% are white
- 9% are Latino or Hispanic
- 9% are black
- 5% are Asian or Pacific Islander
While Zillow reports a dedicated 25% of millennial house hunters gravitate to large, urban areas, like condos for sale in Austin, more than half have a desire for shared amenities. Shared community amenities are important to 54% of the home buyers within the generation. The desire for communal conveniences is clearly important to this large group of home buyers, pointing realtors in the direction of trendy, new condo buildings in Austin.
Technology For The Sale
Millennial home hunters are more likely than any other generation to use online resources when finding and buying a house. Some 90% of 30-somethings will incorporate online resources into the home buying process, with 25% of buyers using at least five different digital platforms and more than 66% utilizing affordability tools to judge mortgage options. When it comes to communication, technology takes the cake, again. Millennials will reach out to more real estate agents than any other generation, contacting two realtors on average when buying and at least three for selling. For real estate agents wanting to be picked by this age group, online reviews are key – 60% of millennial buyers and sellers read online reviews of a realtor before hiring. Need to communicate with a millennial client? Here’s how:
- 30% of millennials prefer to talk to their agent on the phone
- 24% of millennials prefer to talk to their agent in person
- 18% of millennials prefer to talk to their agent via text
A promising note for realtors: The majority of millennials hire a real estate agent and are the group most likely to stay in touch and recommend services to friends and family.