After a long time of not buying homes for various reasons, young people are beginning to consider homeownership. They are not, however, looking for many of the same features that homebuyers have in the past. They are strictly staying within their budget and being careful not to buy more house than they can afford. Here are the most common reasons why.
They Have Less Money
The Great Recession hurt many young people financially. They were and still are suffering under student debt and underemployment. So when they are finally able to buy a home, they are unlikely to splurge. They typically look for the best deal possible and may be more inclined to look at homes with a lower price tag for an area. Young people are also seeking budget-friendly homes because home prices have gone up in many areas, meaning they are only able to afford lower-priced houses.
They Don’t Need Large Homes
Large, luxurious houses are something of a status symbol. Traditionally, if someone has a lot of money, they want their house to reflect that. In fact, many people choose to buy a house above their means in order to reflect their status. Younger people, on the other hand, are not doing this. Many younger people are not starting families, or if they are, choose to have fewer children. Often, they just need space for themselves, their pet, and perhaps a significant other. Therefore, they do not need a large or fancy house and are thus more able to stay within a smaller budget.
It Affects Location
Location is everything in real estate, and that still holds true for young homebuyers. However, they are actually looking for houses in cheaper, more affordable areas, even if that means they face longer commutes. Some young people are accepting commute times of two hours or more if it means they can own a house within their budget. This should go to show the importance of budget-friendly homes to young buyers.
The needs and wants of younger homebuyers are critical for the real estate industry to understand. This demographic will constitute the majority of buyers in the future, and marketing practices will have to reflect what they value in a property. The real estate field is shifting, and professionals will need to keep up.