How Millennials are Reshaping the Real Estate Market
The luxury real estate market in Las Vegas is looking at some of its most active days since the local markets recovered from bubble burst from nearly a decade ago. Throughout the notable luxury neighborhoods of Henderson, Summerlin, Green Valley, Lake Las Vegas and many other prime locations, sales remain brisk. Real estate experts attribute the continued movement to several factors, but many of them agree that one of the major driving forces have been the millennials.
Millennials, or people who were born around the late 80s up to the late 90s and early 2000s, are now taking a larger share of the real estate market. In recent months, millennials have grown to take a majority of the residential real estate market, overtaking even well-off retirees who often have more disposable income to spare. How did millennials become a major driving force for Las Vegas luxury real estate? A few factors may give a hint on that.
‘Millennial’ is the New ‘New Money’
The millennial generation has been noted as a generation ready to assert its own independence. Many of these young people choose to save up money for themselves instead of working from an initial capital provided by their parents. This lies in deep contrast to the typical depiction a few years ago of millennials as young and entitled, an image not favored by many. These days, millennials aim to distinguish themselves in their chosen career, and many of these millennials are now recognized as movers and shakers in various industries.
Millennials aim to build up their financial stability first and foremost. This kind of thinking affects the property industry in a few ways:
- A number of millennials opt to rent early instead of buying right away, citing the need to go ahead with the closing process without much problems.
- More renters mean more demand for short- and medium-term residences, which could either mean a need for new constructions or renovations for established units.
- As more millennials become more financially stable, the number of prospective buyers increase, further fueling the market’s robust movement.
The Power of Technology
One advantage that millennials have is their excellent grasp of the technology afforded them. Many of those born under this generation were exposed to new and innovative industrial and technological developments that changed the way people businesses interact. This, of course, includes the wide acceptance of internet.
The worldwide web has become a potent tool for millennials to not only do their work and stay connected, but to buy and sell as well. This affects the way they look for their first or next home, as well.
- More millennials use online resources when looking for a property to invest in. They also prefer to seek out a selling agent online.
- Millennials prefer to seek out information about prospective sellers and agents through their online pages to get a better picture of who they want to sign up with. Some may use third-party information from review sites to even out the picture.
- Owing to their access to real-time real estate information, millennials are far better informed about deals and housing options than the previous few generations. Expect savvier clients with better knowledge about the buying and selling processes within the next few years.
A Face to Trust
To the typical millennial home buyer or seller, trust is a very important thing. After all, they don’t want to lose the money they worked very hard for on a purchasing scam. As such, millennials rarely look for a home through an agent; they often determine their best options first before requesting a quote. When they do find an agent, they tend to that agent, even for subsequent transactions.
- Over 70 percent of millennials only contact one agent throughout the initial stages of the buying process. They tend not to waste time calling several agents and, as stated, earlier, would opt to check out their credentials online before deciding on who to sign up with.
- This high emphasis on trust is seen by industry experts as a sign for agents to step up their game. These new, young clients expect agents to give them the best real estate deals with the least hassle. As such, real estate agents have gone the extra mile to make solid referrals and quicker closings.
- Many real estate agents and brokers are now doubling their efforts to improve their reputation and increase their trustworthiness. Additionally, their online pages have become more interactive and informative to help millennials along with their housing choices.
Millennials continue to seek out new housing options as their financial situation improves, and with their growth the luxury home market grows as well. Their home purchases may keep the market running for years to come.