Real estate investing.
Millennials are the largest group of home buyers for the fourth consecutive year.
What’s driving the change in millennial homeownership?
49% of millennials had at least one child, up 6 percentage points from 2 years ago. While millennials are not marrying at high rates, they are purchasing homes with their partners. About half of unmarried cohabitators are under 35. Most importantly, in a joint Real Estate Investment survey, RealtyShares found that 55% of millennials are enthusiastic about homeownership as an investment. Over half of that percentage would invest in property other than their primary residence.
For all the enthusiasm millennials have towards real estate investment, it remains a foreign concept with many barriers. 70% of all Americans think investing in real estate is more difficult than investing in other asset classes. Few are aware of the options towards homeownership, such as borrowing retirement, real estate crowdfunding, or house hacking.
Millennials believe technology makes the real estate investment process earlier.
Kendra Barnes, a millennial real estate investment coach, started The Key Resource, empowering female millennials to invest in real estate. Today she makes $200,000 in annual rental income from properties owned in Washington, D.C. She plans on buying 2 more properties before the end of the year.
Once a millennial has made the decision to purchase a home as a real estate investment, from an investment perspective could their eyes be bigger than their stomachs? According to Realtor.com, the top 10 cities millennials wanted to live in were:
- Salt Lake City
- Los Angeles
- San Francisco
- San Hose
March 2016 National Association of Home Builders study said they wanted at least four bedrooms, an outdoor space (deck, patio, and front porch), shower and tub in the master bath, and hardwood floors on the main level of the home.