Top Trends in Real Estate in 2017: Millennials and Boomers lead the way
As the summer home buying season kicks off with Memorial Day Weekend, several reports from leaders in the real estate industry indicate the U.S. housing market should remain very strong this summer – and it will be Millennials and Baby Boomers leading the way.
Realtor.com had its economic data team come up with the top housing trends for the rest of 2017, and their data suggests Millennials will make up a significant part of the real estate market this year. Along with Baby Boomers, these demographics make up the two largest American generations in history, and now they’re producing two equally dramatic waves across the housing market.
In both instances, millennials and boomers are reaching stages in their life that are sending them straight into the housing market. That includes getting married and having children (millennials) and nearing retirement or becoming an empty nester (boomers).
Whether buyers are looking to get out of an apartment and buy their first home (millennials) or downsize from a larger home now that the kids have moved out (boomers), they have strong motivations to become a prospective homebuyer.
The Millennial rush
The National Association of Realtors reports that a larger number of Millennials is expected to buy their first home in 2017, at a higher rate than a year ago. A strong economy and continued low interest rates are attracting a growing number of millennials as buyers.
It helps that so many of the jobs being created today are ideally suited for those in the 25-to-34-year-old age range, a key factor among prospective buyers. The strength of the economy, with unemployment at just 4.4 percent nationally, is helping to draw Millennials into the housing market.
Realtor.com agreed that Millennials are expected to represent the largest age demographic among prospective homebuyers. In 2017, one-third of active home shoppers will be millennials in the 25-34 age range, Realtor.com projected, and 74 percent of them will be first-time homebuyers.
Realtor.com also noted that Millennial homebuyers are attracted to places where the local economy is booming, and where they are likely to find plenty of other Millennials.
For many of them, that means Orlando.
In the Orlando area, the unemployment rate is below the national average, at 3.9 percent, which has helped make this region a draw for many young families.
The same is true in Jacksonville, where the unemployment rate is 4.1 percent.
Some of the trends among Millennials include:
- Those in their mid-30s are beginning to settle down and start families, and are looking for their first home.
- Some Millennials who bought homes in their 20s want to sell and find a larger home as their family gets bigger.
- Apartment dwellers are exploring the housing market, hoping to build equity in a home rather than simply pay rent.
Boomers love Central Florida
Boomers are also jumping into the market in strong numbers. Many of them are approaching the market from the opposite perspective.
While some Millennials want a larger house, some Boomers want to downsize now that their children have grown up and moved out on their own.
Other Boomers are attracted to the idea of relocating to an Active Adult community, where they can be among neighbors in their age group while still enjoying an active lifestyle.
Many of them are discovering the appeal of the Central Florida lifestyle, with tropical weather year-round, plenty of exciting things to do across the region, and popular Active Adult communities like Solivita and Vitalia at Tradition boasting of beautiful homes in communities with golf courses, community centers hosting tennis, pickleball and bocce courts, and spas and fitness centers.
The National Association of Realtors projects that both of these trends will continue to rise in 2017, as they did in 2016.
Conclusion: Sunny outlook for housing
Realtor.com and the National Association of Realtors believe a very strong and healthy housing market will remain that way – or get even stronger throughout the traditionally busy summer months.
That steady climb means prices are likely to continue rising as well, so it will pay off to get into the housing market as quickly as possible.
With the likelihood of an increase in prices throughout the rest of the year, it makes sense to buy now and not delay.
AV Homes has been building houses with both Millennials and Boomers in mind. We build homes designed to meet all your needs, and to allow you to fully enjoy newly built homes located in some of Florida’s most attractive communities.
These are places where you’ll feel a strong sense of belonging, and still be close to all the great amenities that the area has to offer.
AV Homes also builds homes for those Boomers ready to start the next chapter of their lives, including relocating to one of our Active Adult communities for those who want to enjoy the 55-plus lifestyle.
Cities like Orlando and Jacksonville, with their vibrant economies, low unemployment rates and thriving nightlife have become strong magnets for newcomers. Whether you’re buying your first home, looking for a larger one to meet the needs of a growing family, or looking to enjoy the benefits of being in an Active Adult community, AV Homes is here to help you find the ideal house to call your own.