If you work with first-time homebuyers, chances are, you’re going to be working with Millennials. Who are millennials? They represent the biggest generation in history and the biggest group of homebuyers in America. As a real estate professional, you need to understand the Millennial generation. In this article and in our course, Millennials are Changing Real Estate: Are You Ready?, we explore questions like Who are Millennials? What influences their lifestyle? What are their desires and limitations when it comes to homeownership?
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Who are Millennials?
The U.S. Census Bureau defines Millennials as being born between 1982 and 2000. Here are six things you need to know about the Millennial generation:
Millennials are numerous
The US Census Bureau reports that there are currently about 83.1 million Millennials, which represents over one fourth of the nation’s population. The number of Millennials surpassed the number of Baby Boomers around 2010.
Millennials are diverse
The most recent estimates of diversity were completed in July of 2014. The US Census Bureau reported that 44.2% of Millennials identified themselves as minorities: 19% Hispanic, 14% African American, 5% Asian, and 3% mixed race or other.
Millennials have unfavorable debt to income ratios
While this generation is still young, many have entered the workforce during a time of recession. The median income for Millennials in the United States who have year-round, full-time employment is $33,883. The average Millennial owes around $45,000 in debt. The average student owes around $12,700 in credit card and other types of debt. This makes purchasing property a difficult endeavor for Millennials.
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Millennials are educated
One third of older millennials (currently in their 30s) have earned at least a four year college degree, making them the best educated group of young adults in United States history (Pew Research Center).
Millennials are delaying marriage and children
Just 26% of millennials in the United States are married, compared with 36% of Generation X, 48% of Baby Boomers, and 65% of the Silent Generation at the same age. According to Pew Research Center, 33% have put off marriage or having a baby due to the recession.
Millennials rely heavily on technology
More than 85% of Millennials in the United States own smartphones, and 65% of Millennials say that losing their phone or computer would have a greater negative impact on their daily routine than losing their car. 57% of Millennials also said that they would change financial advisors for a tech setting.
Our course Millennials are Changing Real Estate: Are You Ready? explores the impact of technology on Millennials in more detail.
Millennial home buying trends and preferences
So, who are Millennials? As a group, they are significantly different than the generations that preceded them. Millennials are racially diverse, more educated, more technology driven, less likely to be married, and less likely to have children—but more likely to have enormous debt. They also expect a high level of customer service throughout the homebuying process. Understanding the characteristics, desires, and limitations of this generation is the first step to achieving success with Millennial real estate clients.