Why do Millennials Hold Massive Real Estate Buying Power?

As a seller, you’re probably keen on selling your home in a reasonable amount of time and for a price that is similar to your initial asking price. If that’s the case, then it’s time to turn your attention to the highest percentage of new buyers in the U.S. real estate market today: millennials. A savvy, smart, and thorough generation, millennials put a lot of time and thought into their home purchasing decisions, which means sellers need to start considering their buying trends for future sales. 

Buying Power

Despite the stereotype that millennials are laden with student debt and unemployment cycles as a result of the competition today, millennials actually have an incredible amount of buying power. Statistics show more than 60 percent of the current real estate market in the U.S. is comprised of buyers between 18 and 36-years-old right now. Sellers know all-to-well that this number is going to increase over the next 10-years, which is the reason why they want to get their homes ready to sell to millennials.

Millennial Thoughtfulness

Another reason millennials are shaping the real estate market is through their buying power and sheer numbers, they are also introducing a level of thoughtfulness and thoroughness that hasn’t been a witness until today. Some people, especially older generation individuals, will question everything the real estate agent has to say at the sale. 

This is not the case with Millennials. 

They are not a generation that wants to take chances when the opportunity presents itself. According to a survey conducted by Fannie Mae, the majority of millennials revealed they consider buying a home a smarter and more sensible move compared to renting a property. By making the decision to target millennials, sellers will know they have a more eager buyer than if they were dealing with a Gen Xer. 

Technological Embrace

It’s also no surprise that millennials are embracing technology much more than any other generation. They are the first generation in our nation that grew up entirely with technology at their fingertips. They are therefore likely to use online resources when searching for homes to buy, adding to the extensiveness that goes into their home selection decision. A staggering 90 percent of individuals from this generation will incorporate online resources in their home buying process.

By devoting this type of time and commitment to the home searching process, millennials are commanding an upper hand simply because of the homework they’re willing to put into buying a home.

In total, because of the sheer size of the millennial home buying market, their decision to buy properties instead of renting them, and their unmatched thoroughness that puts some realtors to shame, millennials are – and will continue to – dominate the real estate market in our country today.