Millennials, the generation that only wanted to rent and not buy, make up a huge portion of the U.S. housing market, 38%to be exact. This percentage is the largest share of one group in the housing market.
This generation is defined as the people who were born in the years 1981-1996. Millennials have the reputation of still living with their parents or not wanting to cough up a lot of money to buy a home. But that has majorly changed over the last year or so.
Throughout the COVID-19 pandemic, the housing supply remained strong with people flocking to buy homes, including millennials. The likely reason why this generation put off moving out and buying their own home was the increased home prices. But this has changed with incomes on the rise and housing becoming more affordable.
With incomes rising and housing being more affordable, low interest rates on mortgage helped a lot also. Homebuyers save hundreds a month just for low mortgage rates. Despite other turns in the economy, the falling mortgage rates are keeping home buyers engaged.
Not only are they buying their first homes, but they are also going all out. This group is earning more money a year than previous generations. According to Forbes, millennials will become the richest generation in history. The trend of millennials buying high end properties are a driving force for this type of real estate. This generation is looking for homes that are very different from generations before. With the case of having little to no children and jobs that may require them to travel more, luxury condos are on the rise.
Preferences for where to live brought on by environmental values will likely change the housing market. This group is driving the environmental and healthy living lifestyle and are flocking to areas that promote that well. Areas with gyms, trails, and other healthy activities are seeing an influx of home buying. This also has been changed with the pandemic by people looking for more space to do activities out in the open air to get outside of their homes.
For other generations, choosing where to live revolved around where you work but millennials are changing that view as well. Buyers began to look in areas where they wanted their ideal lifestyle, not revolving around work, with remote work becoming prevalent.