Compass Board Member, Leonard Steinberg, recently shared an interesting perspective on the housing market and the Millennial home buyer. This week’s email will cover the Millennial generation and next week I will discuss the Baby Boomer generation. Identifying the Buyer pool correctly and reading the people involved, is one of the secrets of our success.
Why does this matter? When representing Sellers, our team always identifies the most likely target audience for your property. We tailor our staging and marketing to the demographics we identify.
When representing Buyers, it is important to understand the Seller of a property to determine what their negotiating style may be and what is important to them.
Leonard’s thoughts surrounding the Millennial home buyer equate to good news for the real estate market. He feels strongly that the demand for housing is here to stay. As you know, real estate is all about supply and demand.
Here are Leonard’s thoughts:
I want to address Millennial Buyers (now 25-40 years old) who have the means to buy. This sleeping GIANT that exists amongst this 72 million strong US demographic has boldly awakened in 2021.
Millennials who have a longer life expectancy appear to be forming households at a later age than prior generations, but now many are armed and motivated to buy homes and the demand far outstrips supply. Where is their wealth coming from?
- Many are burdened with college debt, but some are emerging from this.
- Many are climbing in their careers.
- Many have been saving and investing in stocks.
- Many are beneficiaries of new industries and companies going public.
- Many are beneficiaries of the GREAT WEALTH TRANSFER - over $60 TRILLION. Yes, Millennials' parents and grandparents are not only delivering inheritance, but they are also gifting and diversifying estates small, large, and huge, due to recent concerns about the potential of new estate and wealth taxation.
Even if only 10% of Millennials - 7 million people - enter the home buying market, that's more than the number of homes sold in all of 2020 to ALL demographics. You do the math. The demand for housing is here to stay for many, many years!
Buying a first home is one of the most exciting times in a person's life. Our entire team loves helping Millennials find their dream home and supporting them through the process. In fact, four of our team members are Millennials. We learn from them daily. I look forward to discussing Baby Boomers next week.
Dana Green