New Generation; New Buying Habits
Millennials are a contentious generation as many marketers, businesses and companies are finding the tried and true marketing strategies that worked in the past no longer work effectively on millennials. New innovations in technology and frugal buying habits in a recovering economy have led millennials to change their priorities based on their immediate needs.
Many millennials are slow to enter the home buying market due to student loan debt, high unemployment rates, a desire to avoid being tied down and tight credit. More millennials in the 18 – 34 range are opting to rent rather than purchase a home, however, as the economy recovers, millennials around the age of 30 are beginning to consider first-time home ownership.
Millennials and the Real Estate Market
Economic hardships have drastically changed their view of owning a home. Many now view it as an additional burden on their finances. This fear has one-third of millennials believing they are three to five years away from having the funds to purchase a home, while another 24.4% believe they’re at least a full five years away from the necessary funds.
Crippling debt and tanking credit has strapped millennials, with a majority having an average student loan debt of $37,173 and up to 52% having less than a $1,000 in their bank account on average. Millennials are also trending toward marriage later on in their 20s, with many pursuing stable careers before considering tying the knot.
Home prices continue to skyrocket in popular cities throughout the U.S., including San Francisco, Los Angeles, New York City and Seattle, leading many millennials to consider cities with great job opportunities but affordable standards of living.
Affordable Living in Austin, Texas with Brohn Homes
Millennials turned off by the expensiveness of bustling cities are looking for cities with vibrant cultures and great job opportunities but with the caveat of affordable living and getting more for what you pay for. Homes in Austin, Texas are a great example.
Austin has had a significant boost in job growth without the expensive burden that other industries have had on their cities, such as Silicon Valley’s influence on San Francisco’s economy and housing market. Austin also provides a youthful, bustling culture that celebrates uniqueness, independence and togetherness with a vibrant arts community and nationally recognized events such as the SXSW Festival, circulating millions of dollars into the local community. Additionally, Austin homes feature contemporary designs and are moderately priced compared to other populous cities, providing homebuyers with more features, including driveways, two-car garages, ample backyard space and several bedrooms and bathrooms.
Several affordable communities for millennials exist in Austin, including move-in ready homes. Brohn Homes’ quick, move-in ready homes in Austin are perfectly suited for millennials entering the buying market for the first time. These homes are already fully constructed with contemporary design and features in mind. Features include everything from ornate tiled floors to rustic wooden floors, vaulted ceilings with modern light features, beautiful wooden cabinets and glossy, granite countertops. The homes’ interior matches their exterior façade, featuring expert craftsmanship and stonemasonry on some models for a sophisticated, opulent look without the hefty price it would go for in other cities.
Contact Brohn Homes today to speak with one of our friendly agents about how you can achieve the American Dream, all within your budget.