By Will Heaton
They’ve been called selfish, criticized for laziness, critiqued for their reliance on technology, and dubbed entitled; Millennials, also known as Generation Y, are individuals born between 1980 and 2000, who despite their stereotype have already begun to re-shape the way we do business.
Composing the single largest generation in the workforce, Gen Yers will soon be changing the consumer environment dramatically, replacing age -old traditions with new ideas.
Among them, millennials hold new values in regards to home ownership, investing, and financial freedom. Often called an entrepreneurial generation, millennials differ from their parents; favoring upward trajectory and job mobility over company longevity. This mindset, coupled with trends of delaying marriage and settling down, is precisely what makes real estate investing attractive to them.
Additionally, this generation is the first in United States history to reach adulthood in worse economic shape than their parents.
Crippled by mounting student debt and uncertain of future financial stability, members of this generation witnessed the financial recession and are especially interested in generating long-term wealth.
“Discounting this generation before interacting with them is a disservice,” said Bill Gladstone, a commercial Realtor with NAI CIR.
According to a survey by RBC Wealth Management and City National Bank, approximately 70% of millennials reported receiving some investing education growing up.
Adhering to a nomadic lifestyle, millennials enjoy the community, amenities, and conveniences of renting rather than buying. Many of these individuals have already begun investing in buy and hold properties, sometimes living in them before renting them out.
Buy and holds are not the only investment type millennials have taken to. Crowdfunding, Airbnb, and real estate investment trusts (REITs) are other preferred investing methods.
Additionally, this generation’s technologies offer new approaches to investing, sometimes at relatively low cost
Not surprisingly, homeownership rates for this generation sit at a new low of 13.2%. Although they currently favor renting, don’t count them out for homeownership in the future. According to a survey conducted by TD Bank, 84% of renters between the ages of 18 and 34 intent to purchase a house in the future.
Harvard’s 2015 State of the Nation’s Housing report predicts an uptick in millennial home buying in the future. The report states, “millennials are now adding to the ranks of renters and will eventually spur demand for first-time homeownership. As the oldest members of this generation turn 30 this year and the economy continues to recover, that demand should begin to emerge more strongly.”
Millennials are redefining the way we do business and will undoubtedly change the real estate market Blame them, hate them, resent them, but think you know them? Think again.
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About the author …
Will Heaton is a co-founder and managing partner at Intrust Funding. As the fund manager, he is responsible for investor relations, underwriting, and new business development. Will has over 10 years of experience in multifamily and residential real estate. He is an enthusiastic member of the community and enjoys participating in various non-profit groups throughout King County. In his free time, Will enjoys adventures with his wife and their two children, classic cars, and fishing.
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