Thursday, June 13, 2013

Millenials: Real Estate’s Largest Consumers

We are hearing more and more about Millenials in the news, and how this new group of 90 million “Generation Y-ers” is finally reaching the time to consider homeownership. While many will point out that student debt and credit standards may keep these potential homebuyers on the sideline, even more hold high expectations that the largest demographic in the nation’s history will continue to be a major player in today’s real estate market.

Encouraging signs that timing is working in favor of the Millenials show that median debt of households made up of people ages 35 and below has diminished by 29% from 2007- 2010. For example, a recent survey by a national home builder shows that over 65% of renters’ ages 18-34 have an income of more than $50K. This same survey shows that 30% of home sales are to first time home buyers who fall into the 18-34 year old age group. Tampa, Florida has seen increased building permits and home starts this year as inventory continues to evaporate and a large portion of our property inventory is being purchased by this demographic. Florida is also home to areas on the top ten list of best cities for recent college graduates. These combined components are greatly impacting our Tampa real estate inventory.

Millenials tend to be value real estate buyers. Many of them will easily choose a home that is not only affordable but that may need some real estate rehabbing. Many of these needy homes are listed at attractive price points for first time home buyers. Actually, about three quarters of Millenials surveyed said they would look for a home that had “essentials” rather than “luxuries”. Equally important, Millenials also cited that entertainment space, outdoor living areas and ample storage are the highest priorities on their list of “must- haves” in their homes.

Many Millenials are beginning to see the value in home ownership. The Tampa, Florida area provides many great options for home buyers looking for a financially sound real estate investment that trumps renting across the board.

If you are curious to know what your buying power is in today’s hot real estate market, call us to learn more about opportunities and options that are available to you.

SI Real Estate offers highly personalized, multilingual, full-spectrum real estate purchase and sales services. We are a boutique for sophisticated investors, select owners or renters who may be upgrading locally, or those making traditional relocations. We also provide turnkey landlord and tenant management. Blending comprehensive insight into the Tampa Bay area with international perspectives for a worldwide clientele, we like to think that “SI Real Estate is Global Real Estate in Every Way!”