A survey about investment preferences of Americans was made. The result showed that 55% of millennials are interested in the real estate. Many millennials think that investing in the real estate is a good idea. The millennial population is increasing as years pass by. In fact, millennials were the largest generation of Americans last year. These millennials strongly believes that real estate has been doing great since 2000.
hn.Millennials value real estate over other investment vehicles
Millennials were fresh college graduates when the Great Recession took place. The major economic downturn has significantly affected the job market. They had difficulty finding jobs. Aside from that, they also witnessed the worst crash in the stock market. The real estate market was affected too, but not as much as the stocks. During that time, many Americans took home loans and most of them couldn’t afford it. It leads to an increased in the prices of property. It resulted to market adjustments. In 2008, the housing price dropped by 18%. It took years for the real estate market to recover.
The price of housing in popular millennial destinations is on the rise. This includes Austin, Denver, and Portland. According to the report of Zillow, half of the first-time home buyers in America are under 36 years old. They comprised almost 47% of the property sales. A study conducted by the American Modern Insurance Group showed that 86% of millennial renters intend on buying a house someday. If you look at the growing population of millennials, there will be about 50 million future home buyers. A few years from now, the housing market will surely prosper even more. Scott and Amie Yancey are two experts in flipping houses. They starred in a reality series called Flipping Vegas. Watch these Scott Yancey Reviews to see what other people are saying about these two real estate investing experts.
hn.Millennials see the needs of adding tangible asset to their portfolio
Adding tangible asset is a great way to diversify an investment portfolio. Real estate is a tangible asset because you can physical see your investment. Many millennials are image-oriented. They would rather invest their money in something they can see than in something difficult to quantify such as the stocks.
As millennials leading the charge, there is a high possibility that the real estate industry will flourish even more. Hence, this year and the years to come will surely be a great year for all types of real estate investors.