Baby boomers and millennials each approach the real estate market differently. Today I’ll go over how those differences will cause a titanic shift in our market.
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Around this time of year, I get a lot of questions about how the market is doing. One of the biggest shifts in our market will be between baby boomers and millennials; there is a big difference between these two types of home buyers and sellers.
Baby boomers were born between the 1940s and the 1960s. There are over 70 million baby boomers and they are starting to downsize; some are moving into smaller homes, others are moving into assisted living, and some, unfortunately, are starting to pass away. As a result, the demographics in our market are shifting.
Millennials are in their 20s and 30s right now, which means that a lot of them should be looking at homes. However, when many millennials graduated from college, they walked right into a recession. Since the economic structure was so different from what baby boomers encountered, millennials have a very different view on homeownership.
The real estate market is in for a major shift in demographics.
Many millennials have been renting homes. In fact, the percentage of Americans that own homes is the lowest it has been in 51 years. That is primarily because of the recession and our confidence in the marketplace. Still, there are 80 million millennials out there as opposed to 70 million baby boomers; we will see a huge shift as millennials begin to enter the market and baby boomers continue to downsize.
Another thing to keep in mind about millennials is that they are carrying more school debt than any previous generation. Their job market is also incredibly different. All of these factors will impact our market going forward.
If you have any other questions about our real estate market, please don’t hesitate to give me a call or send me an email. You can also reach out to me to get a copy of my book, One in a Million, which is filled with best practices on how to find a great real estate agent. I look forward to hearing from you!
