Millennials are criticized as being apathetic, self-obsessed, and social media-crazed, but the 36 percent of the Y generation that still live with their parents will have to move out and find a home of their own eventually. Although those under 35 years old currently make up only 29 percent of home buyers, that number is expected to double in the next five years and will only continue to grow. Based on a recent Houzz survey with 200,000 respondents globally, here’s what millennials can tell us about the future of the housing market.
Should I Stay or Should I Go?
While many homeowners are remodeling their homes because it’s cheaper than moving and they plan on staying there for the long run, millennials (at 36 percent) are more likely than any other age group to renovate to increase the resale value of their current home. In fact, millennials who are remodeling plan on moving to a new home within the next five years.
Overall, in the next one to two years, U.S. homeowners are more likely to remodel (41 percent) than purchase a new home (11 percent).
Housing Market Recovery
According to the Houzz survey, “Homeowners reported confidence in both the housing and renovation market recovery last year, and we continue to see this optimism among homeowners across the country.” However, homeowners still don’t have immediate plans to “cash in” on the improved market: one in five (22 percent) say home prices are too high. This is especially true in the West and the South including San Jose, San Francisco, Los Angeles and Miami.
Where do the millennials fall when it comes to an improved market? According to the report:
High home prices are also keeping Millennial and single buyers away with 25 percent of Millennials and 29 percent of single homeowners saying they would prefer to move but prices are too high to consider doing so at this time.
Furthermore, while only 13 percent of homeowners plan to buy and 17 percent plan to sell a home in the next two years, 48 percent of renters plan to purchase a home in the next one to two years given the “significantly improved local housing market.”
Millennial homeowners are the most likely to sell and purchase a home within the next five years, so make sure you’re catering a good chunk of your marketing to them. As the years progress, more millennial renters will decide to purchase and others will finally leave the nest, so be open to advertising your services to untapped niches.