Even financially stable millennials are on the move to more affordable areas, and it is not just because they are being frugal. Housing in America continues to skyrocket, leaving many to go for fixer-uppers, as opposed to new construction. As the real estate bubble continues to fill up, many are left wondering when it will burst.
American Real Estate Puts Millennials in a Tough Spot
It looks like rich millennials are willing to buy homes. However, the current state of the real estate market is making that quite difficult. A new report from Coldwell Banker states that members of this group “tend to prefer markets that are more affordable — often in suburbs or second-tier cities, where their dollar will carry them further.” Even rich millennials see the value of moving somewhere where their money will stretch.
Real Estate Prices Continue to Skyrocket
The reasoning behind this trend is that U.S. real estate prices continue to skyrocket. The median price of home sales has increased by 39% since the 1970s, a statistic that is not equal to the $29 income increase (when adjusted for inflation) since 1974 for people between 25 and 34. As a result, we are seeing a millennial migration from expensive cities like San Francisco to other destinations like Boise (Idaho), Reno (Nevada), and Phoenix (Arizona). In addition, we are seeing millennials not only buying places in new locations but also doing it in new ways.
Millennials Using Technology to Buy Affordable Real Estate
More than ever before, millennials are harnessing the power of technology to buy affordable real estate. Innovative companies like Propy are helping buyers and sellers alike conveniently transact around the world. Gone are the days of escrow agents, paperwork, and physical signatures. The modern homebuyer wants efficiency, transparency, and affordability. With technology, he or she can have it all.