It’s looking like you can expect a younger crowd at open houses and house tours when you list your downtown Denver loft or modern home in Washington Park, Uptown, Lower Highlands or other trendy neighborhoods. New reports are showing it’s no longer the baby boomers dominating home purchases. 981 Rent rising rapidly in Denver, many young professionals in their 30's realize they could be building their own equity instead of making their landlord rich.
Experts say young people now make up 32 percent of the housing market in the U.S. campared to 28 percent in 2012. U.S. News and World Report's 2016 Best Places to Live study ranked Denver No. 1. Its proximity to outdoor recreation, a progressive mind-set and it's walk-ability were all cited as deciding factors. Denver's population Growth is at the root of the area's tight inventory, which has resulted in rapidly rising rents and the comparatively high average median home price of $500,000 and rent for a one-bedroom in downtown Denver running about $1,400. Nearly 52% of the people moving into metro Denver in 2014 were millennials, making this the largest portion of all generational groups.
So what does this mean for the Real Estate Business? Well, this city is healthy and hiring, which means that of the 1.6 million jobs in metropolitan Denver, about 33/2 percent were held by 19-to 34-year-olds. And employed millennials who recently moved into the area owned a home. The home-ownership rate was higher than the average home-ownership rate for the 100 largest metro areas. While Denver home prices are higher than other cities on the top 10 list, home prices are still lower than in California, which seems to be the point of origin for many of Denver's young adults, according to realtor.com.
"The millennial generation's move into home-ownership is one of the most important drivers of the real estate market over the next 15 to 20 years." says Chief Economist Johnathan Smoke of realtor.com. Smoke says home buyers will purchase about 2 million homes this year, or about 1/3rd of U.S. home sales.
If you're a Millennial and happen to be thinking about whether or not you should be buying a home, here's a video done by CNBC that answers that question.
Video Credit: https://www.youtube.com/watch?v=J8jRTQeTy5w
What's the take away here? An Elite Home Team Realtor for Your Castle who gets the younger generation can help you market and sell your home to the most motivated and qualified buyers out there. We have tips that might help you target the largest home buying group in Denver. Give us a call!
Happy House Hunting,