Why Millennials Are Buying New Homes in the Suburbs
Millennials are the largest generational group of home buyers today, making up 35% of all potential home buyers. This generation, defined as buyers and sellers age 35 and younger, is starting to move out of the city and into single family homes in the suburbs at a rapid pace. This may seem surprising to many as this group was actually flocking to the hustle and glamor of city centers in recent years. What's behind the reason for more millennials buying new homes in the suburbs?
Living in the city is expensive. For some millennials, renting in the city was a good option in their 20's. However, with rising rents making city life even more expensive, millennials are feeling pushed to look into home ownership. By the time they begin to seriously look into purchasing an affordable new home (typically around 30 years old as reported by the National Association of Realtors), buying a home in the city just is not a viable option. Lawrence Yun, NAR's chief economist said, "The median age of a millennial home buyer is 30 years old, which typically is the time in life where one settles down to marry and raise a family. Even if an urban setting is where they would like to buy their first home, the need for more space at an affordable price is for the most part pushing their search further out."
Value of the Neighborhood
As millennials begin raising their families, they are more concerned with things like safer neighborhoods and good schools. Typically, the suburbs provide a cleaner, safer neighborhood with better schools than what can be found in the city.
A single family home in the suburbs is typically larger than a loft in the city. By the time millennials reach their 30's, they are wanting extra bedrooms for their families. They want bigger kitchens and multiple bathrooms. This simply is not affordable in the city.
It is difficult to play a game of catch in a city street. Millennials want a place to throw a ball around with their kids or dogs. They want gardens and outside space where they can enjoy their families.
It isn't as crucial to live close to the city anymore as working from home is a very real option for many people, including millennials. This gives them the option of spreading out from city centers without taking lower paying jobs.
Millennials certainly don’t want to leave behind all the perks of city life, however. They are looking for neighborhoods with green spaces, walkable commercial areas, yoga classes, and health food stores. They still want to feel a part of a walkable community, but just for a better value.
New Home Resale Value
Millennials are not as rooted to one place as their parents’ generation. They are cutting their career teeth in an environment that encourages and expects several job changes. Just as millennials change jobs several times throughout their career, they expect to move homes more than once as well.Purchasing a nice new home in the suburbs at an affordable price has great potential for a move later on, as well as for the space and value so desired by millennials right now.
Explore the great new home options offered by Princeton Classic Homes in beautiful suburban neighborhoods throughout the Houston area. Be sure to check out affordable new homes from Legend Homes as well!