Millennials are finally expected to unleash their buying arm in 2017. They are predicted to make up 61 percent of first-time home buyers under age 35 in the new year. The top motivators getting millennials moving now are getting married or moving in with a partner, growing tired of their current living space, and planning to increase their family size.
An infiltration of first-time home owners is marching toward the new year with a revolutionary force. This market shift is partially motivated by a real estate war being waged between renters and landlords over rent control in economically booming areas of California – like the Silicon Valley – where “the root of the issue is that there isn’t nearly enough housing for all the new jobs,” as reported by The Wall Street Journal. And, with rent “jumping 37% over the past 5 years” in areas like San Jose, as financial reporter Eliot Brown suggests, it’s no wonder that millennials are locked and loaded to stake claim.
According to Realtor.com, “Millennial buyers want to make sure that their money is well spent: making a sound financial investment is a top goal.” If the industry’s message prevails and the money poured into advertising the rent control campaign pays off, rental regulations could be lifted, further inciting millennials to maximize their purchasing potential.
With a recoil from the rental market and a return to the consumer battlefield, young prospects will have to stand guard in a fiercely competitive buyers’ exchange. But these young consumers have gusto and analysts stand in salute to the burgeoning millennial force that will certainly drive the dynamism of the coming year. Chief economist Jonathan Smoke anticipates that “the share of first-time buyers could rise to 40% during the peak 2017 selling season.” New prospects are armed with the full tank of fuel necessary to “provide a big boost to sales and serve as a sign that the housing market is returning to normal after years during which most new households being formed were apartment-dwellers,” as suggested by real estate reporter Laura Kusisto. Mounted and ready on the front line, millennials know the drill to hit the home buying high mark of the new season.
Are you a millennial looking to buy your first home? Please reach out to me at (619) 857-7191 – I am here to answer any questions you may have and help with every step of the process!