Real Estate agents need to understand how millennials think. Why? In this present age, they are considered as the biggest chunk in the pie of potential homebuyers in real estate market.
Canadian Real Estate Magazine reports that in Canada 25% of the population is comprised of the millennials group. It is noted that this group is ready to "outstrip their baby boomer parents in the real estate market as they start moving into their family-rearing years and purchase homes."
Based on reports, most of these people from millennials are living in areas where there's major job growth. Notable places known for having wider job opportunities are Toronto and Vancouver. Thus, it has been observed that single-family homes and starter condos in these areas rose higher when it comes to sales.
According to experts, the affordability of the real estate property plays as a guiding factor for homebuyers from millennials. Their decision to possibly purchase a house or bigger condo would depend if the property is not too expensive.
Report also mentions that the demographic shift, assuming from Baby Boomers to Millennials, "has forced developers to focus on the development of rental structures, with the expectation that a significant proportion of millennials would prefer to rent for life." This means that this demographic sector considers jobs and lifestyle more attractive than buying their own houses or even cars.
To borrow the words of York University director of real estate and infrastructure program James McKellar, when interviewed by Toronto Star, he said the Millennials, "especially in the United States, have become skeptical of this notion of a house as an investment."
In a separate report, The Star says "Millennials set to drive change in real estate market." It is a common fact that at this time this group of people is "the potential to be the biggest home-buying cohort in history - even bigger than their baby boomer parents."
But the reality dictates that millennials are not so much attracted with buying homes. As mentioned earlier, most are willing to pay rent for life. Thus, it will also impact how real estate business plays not just today but in the future. It is even noted that "even the Toronto Real Estate Board, which assesses the state of the GTA resale market twice a month, seems to know little about the buying intentions of millennials." Thus, the board now thinks of launching surveys concerning this group.
At present, those who prospect homebuyers from millennial should offer affordable single-family homes and starter condos. It's because buying is not their priority plus affordability plays an important role. Another known fact is that they would rather rent a place near their work place than buy a car.
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