Being that millennials are the fasting growing consumer group, their impact can be felt among most industries. In regards to real estate, reports show that millennials are in fact the largest share of recent buyers. This is a very meaningful statistic, that will no doubt have its effects on the real estate market.
In order to explore this impact millennials will have on real estate, we wanted to detail three positive ways in which these young people are already making their presence felt.
1 - Technology
The internet is where most young home-buyers go to explore their possible future abodes. Millennials use apps and mobile tools to explore and research what is available. This has a giant impact on the way in which real estate is marketed, and will be marketed for the years to come.
According to inman, “More than 88 percent of real estate investors voyage through real estate portals for a home to satiate their selling or buying needs.” This is an extremely substantial number, and is a strong indicator of just how heavily tech factors into the home-buying experience for millennials
2 - Geographic Preference
Being that most young people are prone to looking for rentals in major cities, a transformation has been occurring in urban areas throughout the world. International cities in America, Europe, and India have been experiencing positive effects of migrating young professionals.
This surge of demand in these cities coupled with mushrooming investment activities has lead to a strong impact on the global market. This impact can only been seen as helpful being that the global real estate market generates more than 1/4th of the economic GDP.
3 - Wage Growth
It has not been that long since the recession receded in the final quarter of 2014. Since this time, companies have already revamped hiring in a big way, greatly increasing the purchasing power of gainfully employed millennials.