Millennials are ready to invest in South Florida real estate. Learn how to find them
The generation businesses crave to understand – millennials or “Generation Y” – are those born roughly between 1980 and 2000. They were born alongside the Internet, and they currently comprise the largest segment of the population. In South Florida, a staggering 41 percent of millennials are still living at home; one of the highest percentages throughout the country. But these millennials aren’t necessarily lazy; they’re just taking the opportunity to live rent-free, especially considering South Florida ranks highly among all markets in the nation for rising home prices.
As the economy strengthens parallel to millennials’ savings accounts, this leaves a few million potential apartment renters and homebuyers who have yet to enter the market. In order to get millennials to make the leap, you’ll want to be aware of the following characteristics.
1. Millennials are choosing suburbs over cities
We’ve been told that millennials are seeking urban locations – aiming to live, work, and play right in their backyard. However, recent studies show that 66 percent of this generation wants to live in suburbs. And since the largest group of millennials have already surpassed 25 years of age, they are most likely now comfortable in their career and looking to start families – ready to return to suburban living. Demographers claim that millennials have been “stuck” in cities since the 2008 economic downturn, and now that the economy is picking up, Generation Y is ready to pick up as well. This should make Realtors consider targeting millennials for new suburban communities.
2. Millennials have different priorities than prior generations
Millennials are waiting longer to leave their parent’s homes and, in turn, waiting longer to get married and have children. However, that doesn’t mean that they don’t want to own a home. While a growing number of them are choosing to live with their parents, 93% aged 18-34 say they want to own a home sometime in the near future. Realtors may want to consider offering investment and real estate apps, targeting the tech savvy younger generation. Whether you focus on collective investors, crowd funding, or peer-to-peer solutions, real estate entities need to prepare for the millennials, as their peak home-buying years are approaching.
3. Millennials are optimistic about their financial futures
Real estate professionals might assume that since millennials are staying at home longer, they don’t have the funds to live independently. However, 32 percent have enough money to live the lives they want and 52 percent expect to do so in the future. They’re not poor; they’re stubborn with their money. It’s important for the industry to realize this and provide easy platforms for them to invest.
There is no doubt that the most populated generation will be shaping the real estate market in the coming years. New construction is already adapting to the millennial shift, with more amenities and open floor plans. Members of this demographic group are confident, connected, and ready to begin making investments in their future.
As you buy and sell properties in South Florida with a focus on appealing to millennials, consider these trends. And for more information, visit Tim Singer & Associates. With over 25 years of experience in the South Florida market, we know how to find the right real estate for the right target market.