Studies show that more millennials are renting now than they were five years ago, but most of them still dream of owning their own single-family home in the very near future. The National Association of Home Builders survey found that most millennials intend to purchase a new home in the suburbs rather than the city. Interestingly in 2014, more millennials moved to the suburbs from the city. The housing industry has been studying and surveying this generation because they need to know where and how they will live and most importantly, how soon, since Millennials are the largest consumer group since the Baby Boomer generation.
Builders who develop entry-level homes are marketing to first time buyers based on monthly payments. “Why rent when you can own for the same monthly payment?” Rents have increased so much that buying makes sense. In fact, California is the second least affordable state for renters, following Hawaii.
The challenge for these Millennials however is their credit score. Being a good tenant does not improve one’s FICO score. So builders are partnering with lenders to help first-time buyers qualify for a loan. Some builders are offering incentives such as no closing costs, no down payment to first-time, entry-level buyers.
The desires of this generation greatly differ from the Baby Boomers. Baby Boomers want huge, open floorplans, big and upscale homes. Millennials have a totally different perspective. They want their homes to be practical and functional with technological features throughout. Casual entertaining is also important to them. Finally, they also want a “green” home without breaking the bank. So builders are incorporating affordable green designs to appeal to this generation.
Community features are another important aspect. However, this generation does not want to live on the golf course or in a high-density community. Neighborhoods that allow pets and have pet amenities is a big plus! There has never been a better time for young people to purchase a brand new home!
If you or someone you know are interested in purchasing a brand new home, don’t hesitate to contact The Cesi Pagano Team
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