Young People are the Biggest Buyers in High-End Homes
Prior to the pandemic homeownership was not a high item on a goal list for many millennials. But this changed as the pandemic dragged on from weeks to months and into years. With this being the largest age group of potential homebuyers looking at the home as a place to crash between traveling and work and making a switch to working remotely from home full-time, the importance of owning a home became a higher priority.
The actual parameters that define a millennial are someone born between the years of 1981 to 1996. Research has shown and confirmed this age group has been slow to embrace homeownership. People in their mid-20s to being newly 40 were more reluctant or unable to purchase a home.
After many years of waiting on the sidelines and jokes of college kids never moving out, the millennial generation is now the largest group of homebuyers and purchasing homes at a record pace. They are accounting for the largest share of buyers in the United States since 2020.
A survey conducted by the National Association of Realtors showed that 37% of buyers were of the Millennial age range. This is a number that has surpassed the baby boomer generation and is expected to become the largest living adult generation in the United States. This is one of the factors that has experts predict the demand will remain strong for years to come on homes for sale.
The growing interest of millennials has played a huge factor in all markets, but most prominently in high-end housing markets. It is said that millennial buying power is helping to fuel rising home prices in the country’s priciest property markets.
This generation once joked about as living in their parents’ home until they were 30 holds a majority of high earning professions. Some real estate experts analyzing research results are noting that they have never seen this kind of impact on the market from younger buyers ever before. Just the number of buyers in their late 20s and 30s searching for homes is driving a very competitive market in higher-end communities across the country.
This is not a bad thing for home sellers in higher-end desirable communities that own properties millennials are interested in. Though mortgage rates are rising many of these millennial buyers that hold steady jobs are still able and very interested in purchasing a luxury home while mortgage rates are still lower than they had been a couple of years before the pandemic pricing them out of homeownership.
Many millennials are coming into a stage of their life or they are thinking about growing families and settling into a location they want to be for the foreseeable future. They also want to do these things in a home that they will truly love to spend a large amount of time in as many of them continue to work remotely.
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