The current housing market is a busy place. More people than ever are wanting to purchase homes, and in most cases, there aren’t enough homes readily available to meet that demand. When you put an offer down on a home, you can usually expect a bidding war to ensue, since the competition for homes is so high in 2018. This demand among millennial home buyers has created housing trends that we weren’t expecting.
Starter homes are hard to come by
Because of the high demand for housing, starter homes are scarce. In many communities, this demand far outweighs the available inventory. The cost of land and labor is also getting higher, because of this demand, meaning that small and modest homes aren’t getting built as often. What does this mean?
More apartment living
Because the cost of homes is rising, a lot of potential home buyers are choosing to opt for above average apartment living accomodations, instead. Micro apartments are cropping up all over highly populated cities, such as NYC and LA. When the living spaces available are so small, many landlords are offering luxury perks and amenities to make up for the miniscule living quarters. Most tenants go into these apartments knowing that they are temporary living arrangements, until they can afford to purchase a more expensive home. Which brings us to…
Luxury custom built homes
Millennials are a highly visual generation. They are drawn in from beautiful images on social media, and they are willing to pay more for something that is aesthetically pleasing and fits their dream goals. Because of the general lack of starter homes available, a lot of millennials are choosing to save their money and instead of purchasing a home that is less than what they want, they choose to invest it into a custom built home that meets their dreams and aspirations. They would rather spend a few years in a modest apartment while they wait for their home to be custom built, than have to pay for an overpriced old home that isn’t what they want.
Low down payments are becoming more common
Many millennials are choosing to become home owners at young ages. Not necessarily younger than the generation before them(due to the inflated cost of living now), but often homebuyers are younger than we expect. Because of this younger age, coupled with the higher cost of homes, many homebuyers don’t have large down payments saved up. In some areas, 0% down payments are even possible.