Millennials are bucking trends and changing the landscape of America, according to experts on generational trends and homeownership presenting at last month's 2016 National Association of REALTORS® (NAR) Legislative Meetings & Trade Expo. While all generations have their own hardships, opportunities and defining features, millennials are coming of age in a time of deep demographic transformation, experts say.
In a session titled "The Minds of Millennials—Motivation, Mobility and Making Home," panelist Paul Taylor said these shifts are "creating big generation gaps that will put stress on our families, our politics, our pocketbooks, our entitlements programs and perhaps our social cohesion."
Taylor, who is executive vice president of the Pew Research Center and author of "The Next America: Boomers, Millennials, and the Looming Generational Showdown," said millennials are different from their parents and grandparents in ways that are already impacting all aspects of life. He described the generation born after 1980 as less religiously affiliated and slow to marry and have kids. They grew up with cell phones and on social networking sites while also obtaining a high level of education, but are still struggling financially because of the economy. Politically, half of the generation identifies as independent, more than ever have before. Taylor said these characteristics have very real effects on homeownership, as 39 percent of millennials are still living with a parent or relative.
Jessica Lautz, NAR managing director of survey research, said millennials are facing student loan debt, flat wages, rising home prices which are making it harder to get into the homeownership game, and rising rents which are complicating the saving process. These factors are delaying milestones like marrying and having children, major events that often cause young people to buy a home.
The real estate industry is already feeling the impact as the number of first-time buyers has dropped to 32 percent. Still, one big thing hasn't changed - millennials still see value in owning a home, according to Lautz.
"The median age of first-time buyers has stayed relatively unchanged at 31," Lautz said. "This means that they are ready and willing to buy if they can in fact break into the market."
When ready, they are looking to a real estate agent in higher numbers than ever before. "You might assume that they would prefer to take on a purchase or sell on their own, being raised in the digital age, but instead, we have found that these buyers and sellers want someone to help them through the process. They rely on real estate agents to get them through the competitive market and to the finish line," said Lautz.
"Even with the issues millennials face, the desire for homeownership hasn't changed. We are seeing young buyers, though savvy with online research, contacting a REALTOR® in their local market who can help them through the homeownership process," confirmed Karen Trolan, president of the Silicon Valley Association of REALTORS® (SILVAR). Trolan represented SILVAR at the May 9-14 REALTORS® Legislative Meetings & Trade Expo in Washington, D.C.
The Silicon Valley Association of REALTORS® (SILVAR) is a professional trade organization representing over 4,000 REALTORS® and Affiliate members engaged in the real estate business on the Peninsula and in the South Bay. SILVAR promotes the highest ethical standards of real estate practice, serves as an advocate for homeownership and homeowners, and represents the interests of property owners in Silicon Valley.
The term "REALTOR®" is a registered collective membership mark which identifies a real estate professional who is a member of the National Association of REALTORS® and who subscribes to its strict Code of Ethics.
Variations of this article have appeared in local area newspapers.
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