Millennials are poised to become the largest living adult population, and with that will also become the force that defines the economy.
Millennials in general, are defined by their tech-savvy skill sets and the desire for tangible results for the effort they place; they are also known for debt, with the average college graduate owing $37,172 according to the Wall Street Journal.
Despite financial status, TD Bank reports that two-thirds of Millennials are setting money aside for down payments. This is backed up by a study done by the National Association of Realtors, which found 65% of first time home buyers were Millennials.
The desire for homeownership is there, and the generation is looking toward real estate investment as a way to help save for down payments.
An article by Realty Shares determined that real estate investment has historically outperformed the stock market; at times boasting double the returns in investments.
Aside from the financial benefits, real estate investment is attracting millennial for philanthropic reasons. Single-family rental properties are a way for people to invest in real estate, while at the same time providing affordable housing options.
Thanks to online investment companies, Millennials can also find these opportunities outside of their geographic area.
It’s here where the generation’s characteristic tech savvy-ness can be combined with a bit of financial literacy to build a portfolio that gives returns that can’t be found in other methods of investment.
This allows the flexibility to live in the city they want while maintaining access to affordable investments outside of major cities, where property values tend to be lower.
Another way Millennials are affecting the market is by how they look for their own prospective housing. Realtors are taking note of how more potential buyers are beginning the search for a new home online, rather than contacting their real estate agents.
Web-based companies are adding to the delocalization of real estate investments.
Platforms such as DCT Capital Fund help small-time investors access these opportunities with an easy to follow interface, and available properties across the nation; having access to investment opportunities across the country is particularly attractive to Millennials that live in local markets that aren’t investor-friendly.
With a growing market for online real estate investment, coupled with Millennials on average reaching their peak spending years, it would be wise to pay attention to how the market is evolving and how you can benefit from it.
This generation is affecting every industry, and the common thread is the consequence of refusing to adapt to the shifting landscape.