In a mood to search for the positive when it comes to the housing market, a variety of real estate professionals have begun focusing on the purchasing power of Generation Y as a possible remedy to the current real estate slowdown. Generation Y—those born between 1980 and 2000—are poised to enter the ranks of homeownership, and the power of their numbers (over 80 million) is setting expectations that their impact will rival that of the notorious Baby Boomer generation.
Pointing to their recently released study, which estimates that over 51 million of the eldest Millennials are set to become first-time homeowners, Wells Fargo last week announced that it is intent on reaching this younger generation and considers it “a lifeblood for the industry” of housing. In tandem with the announcement, the website HousingWire reported that Wells Fargo also screened presentations in theaters across the country for over 26,000 real estate agents, taking the opportunity to underscore the importance of this coming tide of buyers.
Being prepared to accommodate the preferences and purchasing power of Generation Y was also a topic of conversation at the National Association of Home Builders (NAHB) International Builders Show in January of this year. The diversity and technology-centrism of the Millennials, speakers insisted, is bound to affect their choices when it comes to living spaces and homes.
The trends outlined at the NAHB conference included a priority on urban living spaces, with greater emphasis on common areas where Millennials can host friends and family in a casual way. The shift to urban from suburban development will also require home builders to re-imagine living spaces that will be small enough to afford, but offer enough amenities to attract a social and youthful demographic.
The hitch, however, is that many Millennials, having recently graduated from college, have been hindered in their careers due to the recent Great Recession. The economic fallout from this retardation is yet to be seen, but by some estimates it may take Gen Y over fifteen years to recoup the wages and earning power that the recession has cost them. Such a recovery time could severely hinder their entry into homeownership, and do little for a housing market in need of deliverance.
no comment until now