Zillow is Upping their Millennial GameJuly 12th, 2017
Millennials are a living the slow version of their parent’s American Dream. Why? Let’s take a closer look and see what is causing the hold-up in this age group. And, to be clear, it isn’t just plain laziness, as the media has suggested throughout the last few years.
Debt among the millennial generation has skyrocketed due to the growing amount of student loans, car loans, underemployment rates and high credit card interest. The average college graduate has over $28,000 in student loan debt. Debt isn’t stopping millennials from buying though, they are just doing it at a bit slower pace than their parents. Instead of snatching up their own homes and starting families in their 20s, many are waiting until their 30s to make these big life choices. However, the boom is coming – according to predictions by the National Association of Realtors. Over 80% of millennial and Gen X buyers consider a home a good financial investment and many are considering making their first home purchase in the next year.
However, there are many obstacles that still remain for millennial home borrowers. Included in these obstacles are “under or unemployment and subpar wage growth, rising rents and the amount of debt to repay” and these obstacles have made it extremely difficult for most millennials to gather the funds for a downpayment. Some may be halted while waiting for a more traditional approach as well – such as marriage.
According to recent surveys, this age group is also most likely to put off marriage or family in order to own their first home. They are buying for shorter periods of time and looking at the market as more of an investment opportunity. They are buying, flipping and selling again. And many are making good money doing so.
However, Zillow (via Realestate.com) is looking to make home buying easier for first-timers and is specifically targeting the millennial generation. On RealEstate.com buyers can now search for homes by monthly payment, making it easier to calculate what they are able to afford based on their current rent rates. These calculators include the property taxes, insurance, principal and interest as well as other related costs, creating a clearer picture for this growing generation. Realestate.com is additionally available in multiple languages and caters more to millennials more than any other age group. It includes detailed answers to many millennial buyers serious concerns.
If you ask me, Zillow knows exactly what they are doing in this market. “There’s this age-old lore that millennials don’t want to buy things,” Jeremy Wacksman, Zillow Group Chief Marketing Officer, tells us in an article on Refinery29. “[But] folks are buying homes for many of the same reasons their parents did — homeownership is a reflection of themselves and, for them, fundamental to the American Dream.”
Despite slow growth, Zillow understands millennial concerns and has included them in their plans for growth, adding an app and additional languages, which, as we all know, will appeal even more to this generation of technology lovers.
Millennials, we want your take on homebuying. Are you waiting, if so why? Marriage? Better credit? A more stable career? Is a downpayment holding you back?