Now ranging in age up to 35, Millennials have moved on to the next stage of life — young adulthood. They seem to want exactly what their parents wanted at this age: financial security, a home, and a family. Here are some other facts about Millennials you might not know, according to Ellie Mae:
- Nearly a third of the Millennials buying homes alone are women
- Nearly 60 percent of male Millennial homebuyers are single
- They like FHA loans
- They have higher credit scores than the general population: 722 on average
- Yes, most of them do still live at home (according to CNBC)
- They really do want to own a home, but fear they are not financially ready
So how can you help Millennials become homeowners? There are a few factors in the way that we can’t do much about. According to an analysis by Reuters, the number of homes generally available to first-time buyers (read: less expensive) dropped by 34 percent over the past four years, which is boosting the price of homes across the country.
There are a few positive things happening, though: Interest rates are staying low and the job market has steadily improved. Many who believe they can’t afford a home are incorrect. This is where I come in, to help you help your clients review their financing and see how we can help them. Many Millennials are unaware of downpayment assistance programs and loans that require less than 5 percent down, but I can show them how these kinds of loans coupled with local incentives and low mortgage rates can help many of them achieve the goal of owning a home.
The National Association of Home Builders has noted several key features that this young generation is prioritizing when it comes to looking for a new home.
Make sure you have a robust online presence. That’s how Millennials will find you, and that’s how they’ll judge whether they want to work with you. If you can’t do business via text, you won’t earn their business.
Know the neighborhood. Chances are, the Millennial buyer will be familiar with the property already, having mapped it, viewed it on Google Earth and probably gone by in person as well. Make sure you do your homework, too.
Don’t ask for a referral; ask if they have any friends you can help out.
The Millennial generation wants to be homeowners. It’s our job to help them achieve that goal. By working together and breaking down the myths surrounding these Gen-Yers, we can help each other and help more clients achieve the goal of having a home of their own.