Photo & Article Source: realtor.com

Millennials: Generation Me or Generation We?

Regardless of whether you think millennials are empowering, creative, helpful young adults or narcissistic, entitled, Facebook junkies, one thing is for sure: they are the people changing and transforming the world of home buying.

If you’re apart of this group and thinking about buying your first home you’re probably asking the generations before you, i.e. mom and dad. Good, but be aware that things have drastically changed since they bought their first home back in the 70s or 80s.

But how have things changed, exactly?

Fact 1: Older millennials take over the market
Just like marriage, having kids or any other major life choice, Americans are now delaying home ownership. Even though millennials are the making up the largest part of the real estate market, they are seemingly older. The median age of home buyers was 33 in 1985 and now the average age is 44. This could be for many different reasons, but higher home prices can only be accompanied by more mature career salaries.

Fact 2: It’s not always Mr. & Mrs.
Times are changing. Almost 3 decades ago 81% of home owners were exclusively married couples. Now that percentage has dropped. Home buyers now are about 67% couples; 15% single females, 9% single males and 7% unmarried couples. Ninety percent of home buyers identified as heterosexual, 3% as homosexual (gay or lesbian) and 1% as bisexual. So of course, home buyers aren’t always going to be Mr. and Mrs.

Fact 3: Prices keeping rising
Home prices have been continually increasing year after year, that’s not shocking to anyone at this point. People in 1985 paid about $80,000 for their single family residential home. Now, after about 30 years, the average home price in Fort Collins is hovering right around $300,000. Home ownership rates hit an all time low in 2015, the lowest it’s been since 1989. The problem? Stringent mortgage standards, in addition to higher home prices.

Fact 4: Bigger homes with more bathrooms
According to the National Association of Realtors, the typical home purchased in 2015 had a total square footage of right around 1,900. In 1985 it was about 300 square feet smaller at around 1,610. How is the extra space used? More bathrooms. It’s very common to have homes with the luxury of each bedroom having their own bathroom, plus an additional powder bath. In 1985 the entire family would be seen crammed into one tiny bath.

Fact 5: Luxe features
Not only are bathrooms a luxury feature compared to 1985, but so are dishwashers and central air conditioning. Two things you could probably not see your life without. In fact, the American Housing Survey reveals that three decades ago dishwashers and A/C only made it into about 50% of homes.

Huge factors within social and economic sections have completely transformed the real estate market. Things are different than when your parents bought a home, so when asking for advice- ask a professional. Call us to see what the right move is for you and what your next step should be to purchase a home: 970-221-5995.