The Homeward Bound Millennial

Millennials have emerged in the real estate market as an undeniable force, responsible for 43% of all homebuyers in 2022.1 However, those aged between 25 and 41 are establishing trends outside the precedent set by previous generations. Having entered a seller’s market, with record-low inventories and record-high prices, the wealthiest millennials are taking their big city salaries and heading to the suburbs. Here, they can skip the starter home, take advantage of modern work arrangements, and enjoy life as a homeowner with closer proximity to friends and family.

A major inflection point in the trajectory of millennial homeownership has been the pandemic. What followed was a shift in values: millennials challenged their reputation for avoiding homeownership and its respective responsibilities. Higher salaries, the opportunity to increase personal wealth, and built-up savings (from spending time at home, inheritances, etc.) are pushing millennials to reconsider their decision to continue renting. Further, and the desire to start a family or keep up with friends is an attractive incentive to purchase a home. Once that decision has been made, millennials have unique habits during the homebuying process. They use the internet for all that it has to offer—increased transparency of home prices and information, excessive home browsing, and even virtual tours. However, that does not mean that they don’t see the inherent value of real estate professionals. 81% of younger millennials are first-time homebuyers and are aware of their lack of knowledge when it comes to real estate transactions— unlike previous generations who may have already purchased, sold, and bought another home by this age. 2 As such, millennials are increasingly looking for real estate professionals to help find their future home, set up tours, assist with paperwork, and be reachable by text and email throughout the entire process.

Despite the desire to relocate from major coastal cities, millennials expect to find the same amenities they’ve become accustomed to—bars, restaurants, and a lively, up-and-coming artsy neighborhood scene. With their newfound financial and professional freedom, they are capitalizing on the opportunity to choose where they want to live, not live where they work. The homes they are finding in burgeoning markets are smart homes with a boutique feel—fully equipped with features that align with modern, luxury lifestyles and living. This may include environmentally friendly features such as solar panels, energy-efficient HVAC systems, luxury, eco-friendly home building materials, and electric car chargers.

Millennials have come out in numbers, equipped with the wealth and buying power to establish themselves as premier players in the real estate market. They are ready to purchase a dream home and own something entirely for themselves, while also making a smart investment. With plans to own the property for at least ten years, this home is as much a dream home as it is an opportunity to grow their personal wealth. 4

Homeward Bound Millennial Web Searches:

§ What small town should I move to?

§ How can I find an agent?

§ Duplex homes for sale in [city/neighborhood].

Desired Markets

States such as Texas, Florida, and Colorado were among the most popular for relocating millennials:

Dallas, Texas

Oklahoma City, Oklahoma

Austin, Texas

Denver, Colorado

Topeka, Kansas

Greene and Putnam Counties, Georgia

Charlotte, North Carolina

Tampa, Florida