Generations of Real Estate- Millennials in the Market
2 minute read
February 24, 2014


generation y Generation Y, also known as Millennials have been breaking the mold of tradition and creating their own path through life. Their unconventional approach to life’s milestones does not cease within the realm of real estate. Millennials have established new trends within the housing market from all sides of the spectrum by foregoing home purchases all together or buying a home before previous generations would have.

Staying Out of the Real Estate Market

Generation Y is greater indebted than any of its predecessor generations. Many Millennials graduate from university with the equivalent of a mortgage payment in student loan debt. This has made mortgage pre-approvals out of reach for many new young graduates. With the new guidelines of ability to repay for qualified mortgages, Millennials are having a harder time being approved for loans due to higher debt to income ratios.

With the ever increasing presence of the Internet, Gen Y is finding ways to earn a living strictly from the internet. Many Millennials decide to forego traditional brick and mortar jobs and opt to travel while earning an income through the internet. With relatively few responsibilities they decide to see and experience the world through travel. As long as they have an internet connection they can get their work accomplished. This eliminates the need or desire to purchase real estate.

Buying Real Estate Before Other Traditional Milestones

It used to be expected that one would get married before buying a home. It was traditional to get married, buy a house as a newlywed and then start a family. Generation Y, however, does not see marriage or a traditional family setting as a pre-requisite for buying a home. Many individuals decide to buy a home while being single. They are doing well financially and see the benefits to owning a home and therefore decide to purchase. Furthermore, many couples opt to buy a house together before getting married. They state that they’d rather put their hard earned money into a down payment than spending it a wedding. They feel that buying a home together is just as much of a commitment to make to one another than getting married.

Generation Y continue to push the envelope in many aspects and real estate is no exception to the rule. This demographic will change the real estate landscape with its brazen and calculated actions.

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