Millennials and real estate

What Millennials Are Looking for in a City

Nearly half of millennials moved away from the city where they grew up.  Here’s why.

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Nearly 20 percent of millennials in a Rent.com survey said they chose their location based on walkability to shops and entertainment.

The millennial generation is a diverse bunch, but there are a few common threads that tie them together. Millennials often value experiences and look at their lives in a different way than previous generations did – and they’re certainly not afraid to shake things up. In fact, according to a recent Rent.com survey of 1,000 U.S. renters ages 18 to 34, nearly half say they moved to a different city than the one they grew up in – but what are they looking for in those cities, exactly?

Job Options

The majority of this generation is just starting careers, making job availability in a city key. Of those surveyed who moved to a new city, greater job potential was the No. 1 driver. However, a high number of job openings may not be enough. More millennials are entrepreneurs than any other generation, and many don’t seek the traditional 9-to-5 positions their parents held. Instead of gravitating toward corporations, many seek jobs in smaller, more progressive companies. Rent.com’s, Where Should You Live After College Graduation? quiz, which was taken nearly 30,000 times, found that 65 percent preferred working at a startup versus a large company.

Safety

Millennials were highly protected as children and grew up with increasing safety measures, such as childproof homes, car seats and urban curfews. As they venture out on their own into their first apartments, they may seek to have a sense of security. In fact, when selecting a neighborhood, safety is top of mind for the millennial generation – about 30 percent of those surveyed said it was the most important factor in their decision.

Access to Restaurants, Arts and Entertainment

Food is very much an art, and it’s one this generation sincerely appreciates. The more unique restaurants a city has, the more likely a millennial is to appreciate his or her surroundings. Getting a bite to eat was the No. 1 answer to where millennials could be found on a weeknight in the quiz.
Bars and restaurants are just a couple examples of the venues millennials seek out, with concerts, clubs and craft breweries joining them on the list. The majority of this generation is unmarried, and they prefer to spend their Saturday nights out. Millennials seek places that offer an experience they’ve never had before, which demands a vibrant environment.

Proximity to Work

This is a generation that considers many of the things once accepted as par for the course to be a waste of time. Long commutes may once have been the norm for baby boomers seeking high-up corporate positions, but millennials seek apartments that are close to work. Many see hourlong train rides as an infringement on their time doing other activities. The less time they spend commuting, the better.

Walkability

Many millennials desire to live within walking distance of restaurants, bars, shops and concert venues; in fact, 18 percent of survey respondents choose their neighborhood based on how close they are to arts and entertainment. It eliminates the middleman, which is frequently a cab or an Uber, and makes last-minute plans easy. Walkability also alleviates the power of FOMO, or the fear of missing out. Social media’s pervasiveness in millennial culture means that everyone is more aware of what their friends and families are doing, and they don’t want to miss out on a second of it. When a millennial lives right in the middle of the action, he or she feels more connected to the world.

Diversity

Diversity, in the way millennials appreciate it, encompasses much more than race. Millennials seek diversity around them in every way, be it sexuality, personality, interests, hobbies, values, religions, cultures, languages and more. Instead of seeking the familiar, millennials look for the unexpected and occasionally, the uncomfortable, reveling in new experiences and questioning social norms at every turn. Combined with social media culture, this diversity creates an open dialogue about many issues other generations were not able to facilitate. As a result, they value cities with an eclectic mix of people and opportunities.

Most millenials expect to be homeowners by 2020

Seventy percent of millennials who do not yet own a home expect to become home owners by 2020, and most expect to use the money they have saved for a down payment, according to a survey of 1,270 members of Gen Y aged 19 to 36 conducted by the Urban Land Institute.

unnamedThe report finds that contrary to popular belief, the majority of millennials are not settling into downtowns of large cities but are living in less centrally located, more affordable neighborhoods. Also, they’re “making ends meet with jobs for which many feel overqualified and living with parents or roommates to save money,” according to the report. “Still, despite their current lifestyle constraints, most are optimistic about the odds for improving their housing and financial circumstances in the years ahead.”
Gen Y consists of nearly 79 million people and is the largest generation in U.S. history, even larger than the Baby Boomers.
The survey found that many millennials are still renting, paying a median rent of $925, with the majority living in city neighborhoods or in the suburbs and only 13 percent living in or near downtowns. Nearly a quarter of those surveyed are still living at home with their parents or other family members.
Millennials say they prefer to live in neighborhoods with urban characteristics, such as those that feature walkability, transportation alternatives, and easy access to shopping and entertainment.
“Gen Yers want to live where it’s easy to have fun with friends and family, whether in the suburbs or closer in,” says Leanne Lachman, president of Lachman Associates LLC in New York City, who wrote the report. “Their desire for an urban lifestyle suggests that the current trend of urbanizing suburbs will present lucrative opportunities for the development community for decades to come. This is a generation that places a high value on work-life balance and flexibility. They will switch housing and jobs as frequently as necessary to improve their quality of life.”
The survey found that 45 percent of Millennial respondents moved at least twice in the past three years – “which reflects the high mobility of the generation,” the report notes.
About 26 percent of the millennials surveyed currently own homes, with the majority of those falling between the ages of 31 to 36 years of age. Of those who do own, less than half (46 percent) say they purchased a home because they believe that owning is a good long-term investment; 41 percent said it offers stability; and 40 percent said they wanted more privacy and space. Sixty-two percent say they’re very satisfied with home ownership, and 64 percent listed the stability and safety of their neighborhood as the most positive feature of their home’s location, according to the report.

– See more at: http://realtybiznews.com/most-millenials-expect-to-be-homeowners-by-2020/98728259/#sthash.U5Sgz2t5.SfZN8Zuw.dpuf

Most millenials expect to be homeowners by 2020

Seventy percent of millennials who do not yet own a home expect to become home owners by 2020, and most expect to use the money they have saved for a down payment, according to a survey of 1,270 members of Gen Y aged 19 to 36 conducted by the Urban Land Institute.

unnamed109The report finds that contrary to popular belief, the majority of millennials are not settling into downtowns of large cities but are living in less centrally located, more affordable neighborhoods. Also, they’re “making ends meet with jobs for which many feel overqualified and living with parents or roommates to save money,” according to the report. “Still, despite their current lifestyle constraints, most are optimistic about the odds for improving their housing and financial circumstances in the years ahead.”
Gen Y consists of nearly 79 million people and is the largest generation in U.S. history, even larger than the Baby Boomers.
The survey found that many millennials are still renting, paying a median rent of $925, with the majority living in city neighborhoods or in the suburbs and only 13 percent living in or near downtowns. Nearly a quarter of those surveyed are still living at home with their parents or other family members.
Millennials say they prefer to live in neighborhoods with urban characteristics, such as those that feature walkability, transportation alternatives, and easy access to shopping and entertainment.
“Gen Yers want to live where it’s easy to have fun with friends and family, whether in the suburbs or closer in,” says Leanne Lachman, president of Lachman Associates LLC in New York City, who wrote the report. “Their desire for an urban lifestyle suggests that the current trend of urbanizing suburbs will present lucrative opportunities for the development community for decades to come. This is a generation that places a high value on work-life balance and flexibility. They will switch housing and jobs as frequently as necessary to improve their quality of life.”
The survey found that 45 percent of Millennial respondents moved at least twice in the past three years – “which reflects the high mobility of the generation,” the report notes.
About 26 percent of the millennials surveyed currently own homes, with the majority of those falling between the ages of 31 to 36 years of age. Of those who do own, less than half (46 percent) say they purchased a home because they believe that owning is a good long-term investment; 41 percent said it offers stability; and 40 percent said they wanted more privacy and space. Sixty-two percent say they’re very satisfied with home ownership, and 64 percent listed the stability and safety of their neighborhood as the most positive feature of their home’s location, according to the report.

– See more at: http://realtybiznews.com/most-millenials-expect-to-be-homeowners-by-2020/98728259/#sthash.U5Sgz2t5.SfZN8Zuw.dpuf

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