Experts Say Millennials Will Drive the U.S. Housing Market in 2020; What Do They Want?
Realtor.com published an economic forecast predicting that Millennials are anticipated to drive the U.S. housing market forward in 2020 more than ever. Their report says that large numbers are expected to either purchase their first home or decamp from city life to the suburbs and trade up.
Millennials are classified as individuals born between 1981 and 1997. This group is expected to reach “key life milestones” in 2020, with many of them turning 30 and expected to purchase their first homes this year.
The report makes it clear that millennials of all ages will help keep overall buyer demand strong in 2020, especially for entry-level homes. 2019 had a similar growth for the potential buyer pool because of the millennial population, along with interest rates remaining low and a rise in rent prices.
Mansion Global writer, Mareesa Nicosia says, “In 2020, buyers may benefit from flat home price growth, which is forecasted to increase just 0.8 percent nationwide. In addition, mortgage rates are likely to average 3.85 percent throughout the year, bumping up to 3.88 percent at the highest point.”
With that said, what do Millennials entering homeownership want to see in their future houses? For this information, we turn to the National Association of Home Builders (NAHB). The NAHB Economics team put together findings from a survey rating of 175 different features on the following scale:
- Essential: Unlikely to buy a home without feature
- Desirable: Seriously influenced to buy the home if included
- Indifferent: Would not influence the purchase decision
- Do Not Want: Not likely to buy a home with feature
The NAHB team found that “at least four out of five millennial buyers prefer laundry rooms, hardwood, front [exterior lighting], patios, and garage storage. Conversely, they give a thumbs down to elevators, wine cellars, and laminate countertops.”
Millennials are also more likely to purchase a home that includes a walk-in pantry, front porch, table space for eating, and a double sink.
Regardless of the age of buyers, there are similarities in amenities that are found to sell homes faster. Andrew Browne Taylor, an online editor from Kiplinger, put together a list of 11 features that will sell your home faster. Garage storage space, a laundry room, exterior lighting, a walk-in pantry, hardwood floors, and a dining room are all features that both the article and the survey on Millennials list for must-haves.
Whether you’re a Millennial looking to enter the market, someone who’s ready to downsize, or searching for a forever home our agents at RE/MAX Select Realty can help. Click here to get started on the process today!
(Image courtesy of National Association of Home Builders)