Millennials, or the millennial generation, can be defined as the segment of our population ranging 18-34 years old that were born roughly between 1980 and 2000. Oftentimes, millennials are the children of the baby-boomer generation. The millennial generation is also sometimes known as Gen Y or the Net generation, as they were born during the time of numerous technological advances. In many cases, they are seen as financially unstable, due to debt from student loans, low-paying jobs, and unemployment.
A recent article by builderonline.com stated that Daphne, Fairhope, and Foley, Alabama were ranked number four in the list of top ten markets that are attracting millennial buyers. Ranked not far behind three other markets, the Daphne, Fairhope, and Foley areas have increased in closings with millennial buyers by a solid 12.8 percent. Ranked first was Honolulu, Hawaii, which had a 26.6 percent increase in millennial buyers, second was Birmingham, Alabama, with a 23.9 percent spike, and in third place was Palme Bay, Melbourne, and Titusville, Florida, with a 15.7 percent increase.
In these lower Alabama cities across the bay from Mobile, the median home price comes in just under $250,000 with an average new-home closing price of $234,900, highlighting the affordability in this specific market for these entry-level buyers, or millennials. However, a large number of markets around the United States are still struggling to bring in buyers due to lack of affordability, and many are beginning to question whether or not millennials can save real estate from another dramatic decline. Ultimately, a future increase in real estate sales and first home purchases by millennials will come down to job availability and whether or not employment rates increase throughout the U.S.
With millennials being the possible answer to avoiding another real estate decline, there also comes the need for agents to fulfill their needs when searching for homes. Millennials tend to gravitate towards real estate agents who are dedicated, easy to communicate with, and value their time. Being born in the technology era, rapid communication is key when working with these clients. The three general desires that millennial buyers have, that differ from other homebuyers, are speed of communication, availability of information, and modern mediums of communication.
From what it looks like, our Daphne, Fairhope, and Foley markets are on the right track to housing market success.
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