Alt: A millennial observing properties in the city, confirming that Millennial real estate investors are on the rise.
Millennial real estate investors are on the rise – here’s why
For years, Americans have been making a habit of using their money for investment. Generation after generation, they are considering the stock market as one of the best investing options. But, in recent years, especially after the economic crisis more than a decade ago, it seems like something has changed. Millennial real estate investors are on the rise as their financial situation is reaching maturity. They are seizing all the opportunities to acquire different property types, and nothing shows this trend will stop. To understand where this aspiration is coming from, we need to examine the circumstances.
What makes Millennial real estate investors what they are?
In the last decade, we can notice that older generations are shifting toward a different property type. A large percent of them have been downsizing, while others have been changing their location because of retirement. Not everyone sells, but a considerable number of them do. At the same time, the number of Millennials who are purchasing homes is on the rise. Some of them are buying residential property to live there, but a significant number of others are buying to rent.
Millennials’ investing in real estate is something that catches the eye, especially since the considerable improvement in the job market. With increasing buying power, Millennials have been looking for more cost-effective ways to invest their money. So, they have been reaching out to reliable teams of agents to help them navigate through the world of real estate. To understand why this is happening, let’s analyze several reasons that influence their decisions.
They use the advantages of the internet.
Today, most home listings are available online. You can quickly check and choose a residential property, no matter the distance. Of course, eventually, you will have to visit the potential home. And also, you will have to use professionals to relocate you. But even the help is easy to find with companies like zippyshelldmv.com. This remoteness and online availability suits Millennials.
When it comes to investment, online crowdfunding in real estate has become popular lately, particularly among Millennials. With the internet available at every corner, it’s no wonder. Many aspects of our lives are changing due to advances in technology, and so is real estate. Generally speaking, this type of investing allows you to place smaller initial investments into real estate. In the long run, this is a cost-effective way since all the maintaining services can be scheduled remotely. Additionally, the flexibility of such ownership is complemented by the internet. It is primarily because you can monitor and manage everything online, which Millennials find particularly practical.
Cap: Today, plenty can be achieved remotely with quality online services.
Alt: A man speaking with customer care online.
Millennials are the largest group.
They are the most populous group of all generations in the U.S. The number of people born between 1982 and 2000 now significantly affects real estate markets across the states. Aged between 20 and 38, they are also the largest workforce in the nation. They often earn more than any other generation before them, at the same age. This gives them the necessary resources to choose where to invest. From commercial to multifamily properties, Millennials see the opportunity to earn everywhere. Despite the popular belief, they have proven more than once that they are smart investors and good at saving.
Cap: Millennials are still the largest generation.
Alt: Thousand of pictures of Millennials.
The crisis teaches them to be careful.
There is a reason why Millennials think differently. They were hit hard more than a decade ago when the economic crisis strike. Many of them were just kids. Those that weren’t children were students or had some serious difficulties in finding a job. Also, they watched older generations struggle during the situation. Eventually, the stock crash sealed the conclusion that something has to change to avoid such a crisis in the future.
Some of them are still investing in stocks, but a much larger percentage of Millennials have decided that they need something more stable. This is probably the number one reason why they choose the real estate market. All things considered, you can freely say that Millennials appreciate independence, stability, and flexibility more than any other generation before. If you have decided to follow their steps and bought a property, always be sure you found reliable experts to assist you with relocation. Play it safe, just like Millennials do.
They appreciate the steady rise in real estate.
Today, 8 out of 10 Millennials consider real estate fertile ground for investment. Even if they are not trying to invest for profit, they plan on purchasing a property for themselves. Given the previous experience, they find more value in owning physical property than something evasive like stocks. Basically, they are unwilling to risk more than necessary, even if it could potentially provide them with a larger profit. They had more than enough time to observe the market and learn from other’s mistakes. And the steady rise in real estate only confirms their assumptions. Now, they are already experienced investors that can recognize potential and opportunities. So they decide to place more trust in long-term real estate investments.
Millennials are flexible
Despite the popular beliefs, most Millennials don’t blindly chase the status. While there are always exceptions, many prefer to buy smaller homes at first. If the situation changes, they can always resell and repurchase. However, cost-efficiency is what drives them the most. Also, appreciation for technology shifted their priorities. They would rather pay for a smaller house but fully equipped with “advanced” amenities. Also, there is considerable interest in sustainable homes, which didn’t seem to be a decisive factor in buying homes before. The low cost of maintenance combined with durability becomes one of the crucial aspects when making a purchase.
Cap: They would rather buy convenient property in the suburbs if it’s cost-efficient.
Alt: Set of small houses in a suburban town.
Additional important factors
Besides these, there are several other factors that they look for. Here are some of them:
- The age of the property
- Open floor plans
- High-end appliances
- Practical use of space
- Multifunctional furniture
- Disaster-resistant structure
- Eco-friendliness.
The steady rise of the real estate market shows a steady rise in the quality of life. As more generations join the club, we can expect additional shifts in the future. Currently, Millennial real estate investors are on the rise, and everything shows this trend will continue. Eventually, others will see the same potential and follow their steps closely.
Pictures:
https://pixabay.com/photos/buildings-city-rooftop-edge-2569493/
https://pixabay.com/photos/webinar-video-conference-skype-4216601/
https://pixabay.com/illustrations/personal-silhouettes-many-943873/
https://pixabay.com/photos/city-houses-small-town-architecture-3378773/
Meta: Read about why Millennial real estate investors are on the rise. The reasons behind it and historical situations that place them in such a position.