The millennial generation is emerging fast into the housing market whether we are ready for them or not. You may be thinking this means a big boom in smaller “starter home” sales but this new generation of home buyers may do things a little differently than its predecessors.
According to real estate professionals, the new generation of first time buyers are ditching the conventional “starter home” tradition their parents and grandparents know and buying big.
Not only do these millennials want to bypass their parent’s tradition of buying a “first home” before the “dream home”- they can afford to! Being that they are a generation of change, statistics show that millennials are getting married later and having children later in life. According to the U.S. Census Bureau, an increase in marrying age has been an ongoing trend since the 1950’s and the median age of first marriage is now 28.2 for men and 26.1 for women.
Millennial couples are also more likely to have two steady incomes and are moving in together before they get married and have children. The formerly known acronym DINK (dual income no kids) has become DINKY (dual income no kids yet) in the real estate world as DINK’s are now shopping for homes that will meet their family needs later. Due to the fact that these couples are buying before children, this leaves them with a substantial amount of money to purchase a home and very likely, the home they really want and need for the future.
With these new buyers, it may very well be time to wave goodbye to the custom of the “starter home” and focus on the innovation of the “forever home”.