How is real estate changing according to the demands of the new generations?

 

Hard as it may be to believe, today's millennials aren't living in their parents' basements; rather, they're buying multimillion-dollar homes.

At 38%, millennials -adults born between 1981 and 1996- represent the largest proportion of homebuyers in the U.S., according to a National Association of Realtors survey released last year. "They are just as interested in owning a home. They've just waited longer to buy their first one," says Bradley Nelson, director of marketing for Sotheby's International Realty. Affluent millennials, Nelson says, are going big.

Market Preferences

Millennials are the most educated generation in history, have higher incomes and are poised to inherit more than any previous generation, according to a May 2020 report from the Brookings Institute.

Millennials are characterized by their tech-savvy and environmentally-conscious values, and their millennial preferences are poised to dramatically shape the market.

Luxury headwinds

In addition, amid the indiscriminate decline in overall tax revenues caused by the pandemic, governments around the world are re-evaluating property and estate taxes as a means to cover budget shortfalls.

"For all buyers, tax implications are going to be a bigger part of their consideration when buying a home," Nelson says.

For the growing cohort of young, affluent buyers eager to get their dream home, millennials face a dearth of options that meet their unique tastes. "Inventories are near historic lows across the board, and especially for homes with the features they're looking for," Nelson says.

The world is definitely changing, and millennials know it. Miami is a place that they will probably like to live in.

TV, Millennials and Housing: what do these things have in common?

It doesn’t matter which media, you’ve heard about Millennials: that generation born between the late 80s and mid-90s. While they are commonly known by their eccentricities, this generation is now following the steps of Gen X and becoming the next to make smart investments.

It’s well-known that Millennials have been inspired by Pop Culture to make their housing and lifestyle decisions. This doesn’t mean a bad thing; it means they have an idea of what they want and how they want it. The downside of this is the market itself: Millennials are the generation with the biggest market limitations due to housing prices.

Housing has always been a high topic no matter what generation you belong to. For Gen X, they have the highest level of debt, according to the Transamerica Center for Retirement Studies. Since the early 2000s, US housing interests have lowered, which at that time meant they took all the opportunities and had cheap loans.

So, no one told you life was gonna be this way

This generation was greatly inspired by the famous Friends apartment, which would cost around $4,500 monthly to rent in real life. Moved by this, Gen X thought that by taking loans, they could find places like Monica and Rachel’s apartment by sacrificing some things.

 This is where everything started

In the long run, some people from this generation regret that impulsive shopping. Some regret not being more aggressive pushing for the property they wanted, with the amenities they were looking for, for slightly less money.

Let’s talk about Girls

Millennials are far more observant that we give them credit for. After watching how the 2008 Housing Crisis affected the general economy, this generation accepted that having some amenities would come with more planning. For instance, Millennials usually don’t buy but rent first, start to build their finances first, pay some debts, and then, they decide if they want to move out or buy.

The series that showed a realistic side of this was Girls, where twentysomethings were trying to have a life in the city of New York. This representation of how youth tries to get by each day under the housing situation is possibly the most accurate one.

Millennials have to do more than just move to more affordable places; they usually don’t buy more than they need. They plan their living without taking more debt in.

How Miami Riches is here to help

For us, working towards a future is a priority, but we also help you manage your property according to your budget. We look for the best places in Miami where you can invest wisely and without much sacrifice, always looking for your comfort.

Contact us and we’ll give you all the information you need to start investing!