Stay Focused S2 Ep35: Five Reasons Millennials are Buying Homes
This week, Erik and Randal chat about one of the largest demographics in the home buying marketing, millennials. Here are the top five reasons they are choosing to invest in a home over renting.
Erik: Welcome back to Focused Real Estate's weekly video series. I'm Erik.
Randal: I'm Randal.
Erik: And this is our monthly Focus Five.
Randal: Five things you need to know about.
Erik: Five reasons Millennials are buying houses.
Randal: Yeah, it's an interesting list. It's kind of shaking things up a little bit as this new population of people kind of comes into the real estate market, starts changing things up around a little bit.
Erik: If you're a Millennial, listen in close.
Randal: And give us some hints if we're not hitting them all. Part of that is, it's never been easier ... Reason number one, it's never been really easier to shop for a home. The digital experience is just getting better every day. That's certainly part of it.
Erik: Yeah, and Millennials love their digital devices.
Randal: So do we, don't we? Yeah.
Erik: And it's a great way to search for a house.
Randal: Even as old Gen-Xers.
Erik: Another reason, set number two, is rents are going up. Buying a house fixes your costs.
Randal: Yup, it stabilizes your rent forever. If they never changed your taxes, that would be nice, too, but-
Erik: Or insurance.
Randal: Or insurance. But it does stabilize your rent, really.
Erik: You lock your mortgage in and-
Randal: 30 year fixed rate.
Erik: You have a fixed cost.
Randal: Yup. A lot of them are doing it for the dogs. Number three. For their pets, to have a place for them, for their pets, because so many ... It's harder to get a place as a-
Erik: Yeah, it's harder to rent a place if you have dogs.
Randal: When you have a dog. Yeah. Number four, personality reasons for making their space their own. They can bring in their own colors, bring in their own style, and make their-
Erik: Make their own changes.
Erik: Right. Related to number two, is fixing the cost, is building equity.
Erik: You build equity when you own a home, and Millennials are getting of that age where they're starting to make some investments.
Randal: Yup, yup.
Erik: And that makes sense.
Randal: Well, and you know, I don't even remember what video we went over this, it's ages ago, but talking about the difference in a person's personal wealth. Homeownership changes that. An average renter is worth about $5,000, and an average homeowner is worth about $250,000 net worth.
Erik: So, Millennials, if you're listening, some great reasons why owning a home should make sense. But before you do, give us a call, or we'd love to meet with you, because there are some things you do need to be aware of.
Randal: Yeah, and one of the one things, the big takeaway with a lot of the research we did into Millennial home buying was that some of them are buying too much and buying over their price range. Making sure that you're making a sound investment, both for yourself and for your future.
Erik: And that you're planning for some of the repair costs and maintenance and upkeep things as well.
Randal: Indeed, indeed. Well, thanks for watching today, everybody. Don't forget to like us on Facebook.
Erik: And subscribe to our YouTube channel.
Randal: Until next time-
Erik: Stay Tuned-
Randal: Stay Tuned-
Erik: And Stay Focused.
Randal: And Stay Focused.