TheMReport — News and strategies for the evolving mortgage marketplace.
Issue link: http://digital.themreport.com/i/1379186
26 | M R EP O RT QUICK TAKE I n recent years, experts have focused on millennials becoming the largest new wave of first-time homebuy- ers. Real estate professionals have adopted new technology and social media marketing in hopes of hoping to hook this generation (currently ages 25-40) and filling their lead funnel with new prospects. The good news is, we know they still believe owning a home is a valued investment and part of the American Dream. The problem? The housing market, in its current state of limited inventory and extreme competition, makes buying a home a big challenge. For example, baby boomers, who were born between 1946 and 1964 and are currently between the ages of 57-77, still represent a large share of current buyers. Along with Generation X and others, they're defining a "new era" of real estate caused only in part by the coronavirus pandemic. We've known for some time that, compared to their parents, millennials have put off buying a house until later in life. As real estate professionals, we obviously hate to see this generation forced to rent longer than they should have to, but until inventories catch up with demand, that could be the case. New Priorities E ven before the COVID pandemic, we were seeing buyers move from the cities to the suburbs, where prices are normally cheaper and families can purchase larger homes with more space. We've seen that move ac- celerate over the last 12 months, creating a new trend brought on by remote work and low interest rates. As people have grown accustomed to working remotely, caring little about commutes and gas money, living in more remote areas has suddenly become an option. Homes must now be more adaptable for the entire family, allowing for separate spaces for work and studying. While an end to the pandemic may be within sight now, some experts are predicting that many will not return to a normal office space and may continue to work and Zoom from home. The challenges of the previous year have helped many recognize the value of not commuting and maintaining greater work-life flexibility. A house's potential to do all things for the family, no matter what may come our way, will be extremely important now and in the future. The Future of Millennial Homebuyers Here's how these important cohorts are differentiating themselves within the modern housing market. By Kuba Jewgieniew