Millennials - people aged between 18 and 34 years - are perhaps the most talked about generation right now. They are supposedly shaping everything, right from the economy to the housing market. These guys are everywhere.
Considering the buzz surrounding the Generation Y, Redfin released two back-to-back reports on the demographic.
In its first report, titled "Where Do College-Educated Millennials Live?" the Seattle-based property firm found that homeownership rates for millennials were only 42 percent when compared to the 65 percent of the total US population.
Ninety two percent of the Gen Y said they would want to own a home in the near future. But in the meantime, where is the population holing up? Redfin found the top ten neighborhoods teeming with millennials right now. Take a look at the infographic below:
While this report may have highlighted the most popular areas among millennials, the other report by Redfin revealed blatant indicators of a millennial neighborhood, some of which are:
- Too many organic food chains
- Too many dogs and Frisbees in the park
- Too many techies
- Too many cuisines in your neighborhood and more
So, are the millennials prepared for home ownership yet? Redfin experts say, not very much.
"Home buying goes with getting married and starting a family. That's one thing that hasn't changed," Mark Colwell, a Redfin agent for the San Francisco market, said in a statement.
"Millennials who flock straight from college to San Francisco and other expensive cities are making a choice to spend their income on quadruple-digit rents and eight-dollar gourmet hot dogs from trendy food trucks. This means they're not saving for a down payment, further removing them from the housing market."
But some analysts have argued that the millennials are currently watching the economic conditions before making a purchase decision. The generation is cautious about taking the property plunge and is waiting to strike when the time is right. Many say that these guys are waiting for home prices to fall and mortgage rates to hit a minimum low before closing in on a property.
A previous survey by the Harvard Joint Center for Housing Studies claimed that millennials could form 24 million new households by 2025.
"Ultimately, the large millennial generation will make their presence felt in the owner-occupied market," said Daniel McCue, research manager of the Joint Center.
"Just as they already have in the rental market, where demand is strong, rents are rising, construction is robust, and property values increased by double digits for the fourth consecutive year in 2013," McCue added.
