Catering to the Millennial Generation - What Stands in the Way of Home Ownership?

 Posted on December 00, 0000 in Naperville Real Estate Lawyer

Millennials are more than just history's youngest consumers; they have shaped the very world in which we live. Their love for technology has made items that were formerly seen as conveniences - things like free wifi and USB ports - an expectation, rather than a perk in restaurants, hotels, and coffee shops. A strong desire to make less of an impact on the planet than the generations before them, millennials have also encouraged many companies to adopt more eco-friendly practices. Now, with many of them reaching a stage where they want to start a family, real estate developers who wish to achieve future growth and success are having to consider (and find solutions for) the challenges that stand in the way of home ownership for this unique demographic. A recent survey may help shed some light on the subject.

Millennials Express Concerns Over Rising Home Prices and Interest Rates 

During the Great Recession, home prices dropped dramatically. The economy has, thankfully, since recovered - so well, in fact, that house prices in many areas are nearly the same as they were before the recession. Unfortunately, the lack of income stimulus in many parts of the country, paired with the drastic rise in house prices over the past few years (currently up 6.8 percent from the previous year) has made purchasing a home seem impossible for those who are just looking to purchase a small starter home. Millennials, who are just starting out in the world and may not have the best paying jobs quite yet, seem to struggle with it even more. Experts say this could because it is not just home prices rising, but loan interest rates as well.

Housing Shortages Exacerbate Concerns Over Home Pricing and Interest Rates

Rising home prices and interest rates are not the only challenges preventing home ownership for millennials. There are also shortages in new, affordable homes - particularly in areas that are already oversaturated and overdeveloped. As a result, millennials feel that they do not have a lot of options, so they continue to rent - often at a price that is equal to (or possibly even more) than a mortgage. How can real estate developers solve this problem?

There are many theories, but with tariffs and other external matters already driving up the cost of building new homes, many developers are concerned that there may not be a present solution. Our real estate attorneys know better, however. By practicing due diligence and ensuring you have a seasoned legal professional on your side, negotiating in your favor, you can drive down the cost of production and development and pass that savings along to consumers. Moreover, there are innovative housing development ideas that are starting to catch on, such as houses with multiple “master” bedrooms that appeal to the millennials not looking to start a family but, instead, live with friends.

Contact Our Naperville Real Estate Lawyers 

As one of the most trusted real estate firms in the state of Illinois, Lindell & Tessitore, P.C. can protect your interests at every stage of your next real estate transaction. Seasoned and experienced, our Naperville real estate attorneys handle the legal details so you can have the time, energy, and resources to handle the rest. Schedule your personalized consultation by calling 630-778-3818 today.

Source:

https://www.corelogic.com/news/corelogic-reports-june-home-prices-increased-by-6.8-percent-millennials-identify-affordability-as-biggest-hurdle.aspx