As the spring real estate market heats up, the Carolinas continue to outperform most of the country. One group that has been particularly active is the Millennials – who are responsible for 31 percent of recent home purchases, according to the National Association of Realtors® (NAR).
Born from the early 1980s to the early 2000s, the Millennials are now the largest home-buying generation since the Baby Boomers.
“The Millennials are a strong force to be reckoned with in this new economy,” said Allen Tate President and COO Pat Riley in the May-June edition of Carolinas Market Update, a bi-monthly real estate video series produced by the Allen Tate Companies. “When we sell this new generation a home, we help them build a future.”
Unlike their parents’ generation who bought their second home by age 30, the Millennials have waited to settle down, for a variety of reasons:
1) They have struggled to find living-wage jobs in the post-graduation job market.
2) They have lacked the financial means to live in a place they want to live, so they’ve settled for renting.
3) They want a lasting relationship with a life partner and have delayed buying a home until they find their soul mate.
4) They are holding out for job loyalty, as they have been discouraged by seeing their parents’ generation lose their jobs.
5) They have been saddled with a large amount of college debt.
But now this group is ready, willing and able to buy. According to NAR, 87 percent of buyers age 33 and younger feel that a home is a great investment. With a median household income of $73,000 and in their peak years to start or add to a family, the Millennials are well-positioned to have a significant impact on the real estate market in this new economy.
Today’s real estate market is seeing activity from other generations as well, according to Riley. Generation X (born early 1960s to 1980s) and Baby Boomers (born 1946-1964) each make up 30 percent of recent home buyers. The remaining 9 percent of recent home purchases were by the Silent Generation (born during the Great Depression and World War II) who are now moving into retirement communities or care facilities.
Carolinas Market Update is targeted to consumers in the Charlotte, Triad, Research Triangle and Upstate S.C. regions. It is produced every other month by the Allen Tate Companies and features information, statistics, trends and predictions about the real estate market in North and South Carolina.
To access the latest Carolinas Market Update, go to the Allen Tate YouTube channel (www.youtube.com/theallentatecompany) or contact any Allen Tate Realtor®.