Generation Y Real Estate
With nearly 80 million baby boomers in the US as the largest generation, we must consider the impact on real estate their children will have. Generation Y, also known as the millennial, were born 1980-1995 and are currently 14-29 years in age. There will be a wave of change in real estate practices, home building trends, and communication styles as these new homeowners enter the real estate market.
The National Association of Home Builders estimates the average age of the first time home buyer to be thirty three years of age. (We all know a family who still has their thirty-ish kid still living at home!) Generation Y is on the verge of lowering that statistic. 2009 home sales have been influenced by Generation Y purchasing real estate sooner due to low interest rates, attractive or regressing home prices, and the $8,000 first time home buyer tax credit.
Generation Y is changing the expectations of Realtors and home buying trends. They want information, answers, and quick responses. The desired form of communication is usually email and text. Gen Y desires on-going communication and want Realtors to be a source of information, not a barrier to it. They will search for homes on various web sites, walk-through the homes interior on-line called a virtual tour, Map Quest the distance to work and social importance’s, and run their monthly house payment before requesting to “see” the house or a Realtor. This process is much different then the home buying practices of their baby boomer parents.
Generation Y lifestyles are quick paced, technology friendly, and social driven. Town homes, condominiums, and urban loft lifestyles are more attractive then a single family home with a lawn to mow. They expect the features in their home that they grew up with. Examples include the latest technology, energy efficient products, and a computer solution area. They want a smaller more modern home. Amenities may include stainless steel appliances, hardwoods and tiles, and granite or designer counters.
This high tech generation demands commitment and skill. Communication styles continue speeding up and they want Realtors to do the same. To date in 2009, the National Association of Realtors reports a loss of over 70,000 licensed Realtors. This drop out has confirmed the importance of Realtors commitment and the value of their service, skills, and knowledge. The evolution of real estate provides more information to the consumer faster.
Heather Morris CRS, GRI, ABR, CLHMS
Broker Associate / Skogman Realty
10/2009
