Millennials are a generation of significant income inequality. Wealthy, college-educated millennials who have had a chance to pay down their 澳洲幸运5官方开奖结果体彩网:student loan debt or were able to not have student loan debt comprise most of the millennials who now own homes. As a tech-savvy generation, millennials🥀 have changed much of the homebuying process over the past decades. Millennials are more likely to use technology to search, view properties, and communicate with real estate🍎 agents. They're also more likely to purchase homes close to their places of work.

Tech-Oriented House-Hunting

For many millennials, technology plays a central role in homebuying. Millennials are around twice as likely to use their mobile devices in their search than older 澳洲幸运5官方开奖结果体彩网:baby boomers are. According to a 2021 澳洲幸运5官方开奖结果体彩网:Nat𝔍ional Assoc🌸iation of Realtors (NAR), 76% of homebuyers used a mobile or tablet search device to search for a home, with millennials using mobile devices nearly twice as often as the Silent Generation.

According to a 2021 report from Zillow, over half of millennials (59%) said they would be at least somewhat confident making an offer on a home they toured virtually, while 39% reported they would be comfortable buying a home online. Over 80% of millennials would like to view 3D virtual tours and digital floor plans when shopping for a home.

Digital advances have transformed real estate marketing, Steven Gottlieb, an agent with Coldwell Banker Warburg, points out. "In the earlier days of online property marketing, we'd grab a digital camera and take the photos ourselves," Gottlieb said. "Today, virtual or traditional staging with professional photography is commonplace to make homes pop on online marketplaces next to thousands of competing listings." What's more, he added, agents who don't do some staging or use a professional are doing sellers a disservice. 

Communicating With Realtors

Millennials also differ from previous generations in terms of how they use tech to communicate with realtors. "They prefer the majority of communication to🐻 be via text message," said Jill Hussar, a broker-owner at Hussar Real Estate in Lak𒊎ewood Ranch, Fla.

Hussar reported that millennials use text messages to express interest in a property, schedule appointments, and ask questions, while phone calls are usually reserved only for more urgent or pressing concerns. Texting represents the most im꧂mediate back-and-forth line of communication.

NAR research suggests that agents adapted to this demand for electronic communication, with 93% of agents communicating via text and 89% using email. Another 36% chat with clients through instant messaging.

Another digital impact is in how agents list homes. Hussar said that tech-savvy millennials are leading agents and brokers to introduce features like livestreaming and video in lieu of traditional photographs. "Videos give the audience a broader view of the property, communication, and location," Hussar added, helping agents get in front of potential buyers and in particular, millennials.

Affordable Houses Close to Work

Millennials are the generation that's most likely to care about finding housing close to where they work: 41% of those younger Millennials and 38% of older Millennials listed commuting costs as very important when considering where to live, while 62% of younger Millennials and 53% of older Millennials listed a convenient location in terms of their job as an important factor when picking a neighborhood. Fifty-five percent of younger Millennials and 43% of older Millennials, meanwhile listed overall affordability as important.

Impact of Increasing Incomes

Investment companies are increasingly buying up and renting out starter homes. This leaves millennials buying more expensive first homes than previous generations did. Millennials without a college degree had 19% less family wealth than previous generations, and Black millennials had 52% less family wealth than previous generations had at the same age.

The desire for more deluxe digs reflects, in part, millennials' delay in entering the housing market. They have waited longer for a home of their own, and now they want a place where they can stay for a good long while. They can also finally afford it: college-educated millennials had median annual earnings of $56,000 in 2018, roughly equal to college-educated Generation X workers in 2001. What's more, they had a median household income of $71,400 in 2018, compared with $70,700 for Generation X households in 2001.

“Hardworking millennials, pulling in handsome salaries appear increasingly eager to self-validate by spending on cars, vacations, homes, and other material poss🌳essions,” said , a broker at Coldwell Banker Warburg. Must-have features include high-end appliances, landscaping, furnishings, finishes, and high-tech gadgets, he says.

Gottlieb said the millennial desire for instant gratification in the housing market stems from growing up with social media. "They don't seem to want to take on renovations, even before the existence of current supply chain challenges. They'd rather move right in," he said. "This is causing a wider gap in price, value, and days on market between older properties—even if they have great bones—compared with new construction. Previous generations were more open to renovating an older property and seeing the potential in something that wasn't staged and professionally photographed."

澳洲幸运5官方开꧑奖结果体彩网:The 2022 Investopedia Financial Literacy Survey found that although millennials are the most confident generation when it comes to financial literacy, they're also the most stressed. Those surveyed face significant pressure to make major financial decisions, such as homeownership, at an early stage. Rising costs, particularly in healthcare, and economic inequalities 𒊎have only added to this anxiety.

The Bottom Line

Millennials have left a lasting impression on the housing market, and more changes may be on the way as this next generation of homebuyers enters the fray. Focusing on the positive impacts millennials have created is key to keeping that evolution in perspective. An emphasis on technology, for example, may result in a streamlined, more efficient homebuying process. And more millennials moving to the suburbs could help balance out the effects of rising housing prices in urban areas.