It is a word that is used almost daily in the real estate industry. If you are an agent, like me, you will agree that it is often hard to understand all the changing priorities and characteristics of the “millennials”. A millennial is someone who is born between from 1976 to present. This generation has grown up with technology and entitlement. They are the generation that grew up in the two income family where both parents work away from the house. Millenials have a tendency to be more attracted to technology the paper and print. They require information very quickly and grow bored and disengaged quicker than the generation prior.
Millennials have grown up in an economic slugfest and are often staying in school longer so avoid the student loan death trap. They have increased their level of education in an effort to beat out their competitors for the very slim job prospects upon graduation.
As millennials spend more time in education, they spend more money on the same. This translates into an average of 30,000 worth of student loan debt according to 2015 statistics. Student loan debt means this group of go-getters is straddled with large payments does will affect their buying power.
Many millennials realize the value of owning their own home but they also understand that their jobs are at risk every day with the changing economic outlook. They are the first generation to be worse off than their prior generation.
This translates into the hurry up and wait for game. Wait for the student loan debt to be paid down. Wait for the great job offer to come. Wait for the credit score to bounce back. Some of this generation are waiting this out in expensive apartments, some are in their parents home, and some are working two jobs to get ready to buy. And for those who are ready, where are the houses? Investors and cash buyers are beating them to the punch and with a really really big punch bowl. This sensible generation will only go so far in their quest for home ownership. They would rather wait and wait some more, rather than purchase a home that will require copious amounts of money and repairs. And that is the millennial mindset as of today.
As agents, we must stay focused, patient and help this generation to exceed their own expectations and keep them engaged. We must give them the tools they want and communicate on their terms.