In our current market, the millennial generation makes up a good portion of homebuyers.
Currently ranking in as the largest age group of homebuyers, with 36% to 40% of the market, this generation is changing the housing market and the communities they are moving into.
According to the Washington Post, the Millennial generation (at 85 %) was the generation to most likely view their home purchase as a good financial investment, even given the fact that more than half of all millennials have some form of high student loan debt.
The older millennials, ages 25 to 34, are beginning to think about homeownership and starting a family. With the total house inventory down over the last few years, the hunt to find affordable neighborhoods that still have good school options and are family friendly is on.
Urban Institute’s State of Millennial Housing states that the probability for a millennial to purchase a home increases by 17.9 % if they are married and additionally another 6.2% if they have children.
The National Association of Realtors (NAR) states that the average age for a first-time homebuyer is 32. (Here we go millennials!)
If this is you and you’re looking for your first home in Nashville, click HERE or give us a call at (615) 807-0579. We want to help! If you’re looking outside the city, keep reading!
So where are millennials buying homes?
In an effort to find affordable neighborhoods that are family friendly and in good school zones, a lot of millennials are making a move away from urban into suburban or the so-called “Surban” areas.
Surban referring to areas that have elements from both the urban and suburban areas. Both areas emphasizing pedestrian friendly streets, walkways, shopping, quicker access to open, green spaces than you’d find in a city, plus good public-school options. Which is very often the most important factor when choosing a home for this age group.
What does that mean for Nashville?
Many young, first-time homebuyers are finding what they’re looking for in suburban cities like Gallatin and Hendersonville outside of Nashville. With all the benefits of a suburban lifestyle, affordable living and easy access to the big city if necessary.
What else is shifting due to the millennial generation?
18-hour cities are defined as smaller cities with an above-average urban population growth that allows for a lower cost of living along with a lower cost of doing business than many of the 24-hour cities in the U.S. like Boston, Chicago, Los Angeles, New York, San Francisco and Washington, D.C.
Nashville is one of those 18-hour cities, that is lively all day and into the night hours, allowing for a more diverse and unique city lifestyle that is attracting millennial left and right!
Home and Work
The millennial population tends to be very entrepreneurial with many of them freelancing or starting small business, they are often working from home. This means home buying is approached a different way, when your home and work environment will be one in the same. But have no fear! Our agents are here to help!
Finding your perfect home in this market is a lot easier when you have help! We’d love to assist in any way that we can. Don’t hesitate to call us at (615) 807 0579 with questions! OR if you have a home in one of these areas and you’re wondering it’s value, visit www.armstronghomevalue.com as a resource!