Millennials are up to date, educated, and tech-savvy. It would be fair to think that this up to date population will use the power of technology to gain an advantage in a house search and defy the tradition of employing a real estate agent in this tough real estate market like Atlanta.
Even though the largest demographic of 75.4 million people in the USA might desire to change the status quo, they follow the example of their ancestors by employing a specialist when it comes to home buying. However, the technology may be used as a secondary source.
With that being said, Millennials have significantly changed the shape of the Real estate market in Atlanta. Let’s see how:
Millennials accounted for 36% of all home purchases nationally in 2017, as per the latest data from the National Association of Realtors. A year ago, the Millennials had just 24%. 65% of consumers in 2017 were first-time buyers, and sadly more under the student debt burdens than they were last year, the research reveals.
And while household income soared to more than $88,000—from $82,000 in 2016—”the median millennial analyzed acquired a higher-cost, 1,800-square-foot home—$220,000, compared to $205,000 a year earlier, “as per Atlanta Agent Magazine.
There is a significant 12% rise in how many houses are owned by Millennials now, definitely reshaping the Atlanta Real Estate market.
Houses Proximate to Friends and Family
Millennials in the Atlanta Real Estate market seem to think that closeness to friends and family is essential compared to looking for a place with good schools nearby.
Interestingly, in recent times, the proportion of millennial buyers with a minimum of one kid has risen significantly—52% in 2017, 49% in 2016, and 43% in 2015, the research indicated. And not to destroy the culture-rich, in-town walkability hopes, but most Millennials — with and without children —are more intrigued to buy homes in the outskirts rather than in towns, as illustrated by the Atlanta Regional Commission.
Effect of Increasing Incomes
The need for more expensive housing is a result of the time gap in Millennials joining the housing market. They have been waiting longer for their own house because, now it is thetime, they want a home they will live in for a long time. moreover, they can afford to buy it. Although earning less on average than their elders, the salaries of Millennials are rising— their hourly pay has significantly increased since 2011. A report cited by Accounting Today by Paychex and IHS Market states that those employed in the skilled industries earn an average hourly wage of $26.05, which is $5 an hour more than the usual millennial worker.
All in all, the Millennials seem to be interested in owning their own homes than renting one, especially in Atlanta. It is due to an increase in wage rates and a changed perspective. The changed perspective to live close to friends and family than schools and universities, together with the income rise, has reshaped the real estate market.