Hey, you broke millennials, how does it feel to still have a curfew? We all get it when you were in college the easy life seemed like it was going to last forever. You paid your dues, spent countless hours studying and writing papers. You even went to that 8 a.m. art history course. You were on your own. Living the collegiate dream. Now you are working at Lowe’s trying to save up your money to move out of your parent’s house for the second time. The question now is, what needs to happen to get millennials into real estate buying.
Most of the home buyers that are in the market for in their early thirties. With millennials outnumbering baby boomers it seems like the housing market is still trying to pull itself out of the hole. Before all residential hard money lender out there start jumping ship you need to do the research to find out why this is happening.
Studies have shown that the rate of people that identify as homeowners has not been this low in over 50 years. Roughly half of those homeowners are younger than the age of 34. So why is this happening? For the most part, many young people do not have the same hunger for that American pie. What we mean is most of the younger generation does not care if they have a home or not. Many are perfectly content living at home with their parents or with a roommate.
When a majority of the younger generation is working odd jobs and is in no rush to do traditional things like getting married you could see why many do not want to be homeowners. Why mess up a good thing right? You have food and Wi-Fi; most likely they are living rent free there is no reason to move out. This works against real estate professionals like residential hard money lenders.
Not necessarily, another reason many younger people are not buying homes is simply because they are broke. When you talk to millennials most of them want to move past the traditional 9-to-5 work life. They are looking for jobs that allow them to be their own boss and make their own rules. While it is an achievable dream most of the time they are struggling to find a steady flow of cash.
For some people, even if they wanted to move out most probably could not. It simply does not make any sense once you factor in other more important expenses such as student loans. Sleeping on that air mattress in the bonus room is cheaper than borrowing another loan from a residential hard money lender.
Millennials will come around eventually, though.
This generation of creative liberal feminists will move out, eventually. For the most part, if you were to ask a millennial if they wanted to own their own home they would most likely say, yes. There needs to be a switch, though. The market, if it can, needs to look more appealing than free groceries from your mom. Until then we are just going to crash on that old beat up couch.
Dennis Dahlberg Broker/RI/CEO/MLO
Level 4 Funding LLC Private Hard Money Lender
Arizona Tel: (623) 582-4444
Texas Tel: (512) 516-1177
Dennis@level4funding.com NMLS 1057378 | AZMB 0923961 | MLO 1057378
22601 N 19th Ave Suite 112 | Phoenix | AZ | 85027
111 Congress Ave |Austin | Texas | 78701
About the Author: Dennis has been working in the real estate industry in some capacity for the last 40 years. He purchased his first property when he was just 18 years old. He quickly learned about the amazing investment opportunities provided by trust deed investing and hard money loans. His desire to help others make money in real estate investing led him to specialize in alternative funding for real estate investors who may have trouble getting a traditional bank loan. Dennis is passionate about alternative funding sources and sharing his knowledge with others to help make their dreams come true. Dennis has been married to his wonderful wife for 42 years. They have 2 beautiful daughters 5 amazing grandchildren. Dennis has been an Arizona resident for the past 40 years.