5 WAYS MILLENNIALS HELP HOME VALUES SKYROCKET AND WHAT YOU CAN LEARN FROM THEM
Traditionally, we think of Millennials as kids in ironic tees working to pay off a degree by pouring overpriced lattes. That’s not the reality though. Millennials today are all grown up and making a significant impact on the housing market. We can take cues from them to understand the housing trends and maximize real estate investments.
So what does Generation Y have to do with the value of your home? The potential impact is surprising.
1. MILLENNIALS ARE STARTING TO BUY AND AFFECT PROPERTY VALUES
Originally sidelined by the weak economy, they’re now making moves into regions with a financial future. Given the sheer number of them, where Millennials move the world of real estate should follow. Property values for the types of housing Millennials are buying and in the areas they’re drawn to can change quickly and dramatically because of basic supply and demand. There are more Millennials than any other generation before them, so they’re shaking up the real estate arena. Anyone watching them closely is well-positioned to take advantage of the expected swings in value.
2. AMENITIES ARE HOT IN CITIES & SUBURBS
As a group, Millennials value experiences over material things. They’ve become savvy at identifying places with access to great things to do with friends that deliver the most bang for their buck. They’re often the first to find undervalued areas close to public transit and nightlife, which quickly drives property values sky high as new retail and other amenities such as coffee houses and gyms follow in hot pursuit. If you’re ready to follow their lead or capitalize when they move into the neighborhood, it can pay off big time.
3. FIXER UPPERS
Millennials are makers with their love for all things handcrafted and their thrifty ways. They like to DIY in a big way. In fact, a study by Standard & Poor showed that Millennials have more in common with the Silent Generation when it comes to spending habits and reusing old items. Millennials tend to build significant sweat equity by making over problem properties and researching the most trendy and valuable upgrades. Take notes on how they spend their renovation dollars to see how you can stretch yours just as far.
4. KNOWLEDGE IS POWER
Millennials are the most educated generation this country has ever produced. These twenty-somethings have the world of technology at their fingertips and they know how to use it. They do their homework to find the places with the most potential. They’re also the generation that most often consults a real estate agent because they recognize the importance of having an expert opinion to make the most informed decision. They don’t make a single purchase without doing their research on all the locations they’re considering and neither should you.
5. THE HUBS OF MILLENNIAL ACTIVITY MIGHT SURPRISE YOU
It’s a fact - areas with a healthy job market have higher property values and that’s exactly where Millennials are moving. Knowing that careers aren’t going to come to them, Millennials relocate. Here are the 10 metro areas to where Millennials are decamping for, drawn by the lure of jobs and a relatively low cost of living. Don’t take too long to relocate, however, because with so many Millennials moving in, by this time next year it may be much more expensive to buy the home of your dreams!
- 1. Des Moines, IA
- 2. Provo, UT
- 3. Baton Rouge, LA
- 4. Pittsburgh, PA
- 5. Lafayette, LA
- 6. Grand Rapids, MI
- 7. Madison, WI
- 8. Clarksville, TN
- 9. New Orleans, LA
- 10. Shreveport, LA