The millennials were born in a fast-paced technological and digital era that is constantly developing and moving. But they have also grown up in a time of financial instability, economic crisis, and job insecurity. These factors may be a part of the reason why they are hesitant or financially incapable of purchasing a house, or why they prefer to rent an apartment.
If they do decide on buying a home, recent trends have shown that the vast majority opt for the suburbs or the so-called semi-suburbs. This may come as a surprise because millennials are usually associated with an urban, fast lifestyle, living surrounded by all the amenities and places a city center has to offer. However, that is not the case. Millennials are increasingly interested in the suburbs due to several different reasons.
So, what are semi-suburbs?
Semi-suburbs are, in reality, suburbs located just outside the big city centers. They are high-density areas that have developed a little beyond the typical suburbs. They offer many amenities that appeal to millennials’ lifestyle, they are full of contents and allow the millennials to live a vibrant and active life in a quieter and, what is more important, less expensive area.
Even deciding to buy a property is a big decision and a process for the millennials. Many of them first consider and choose to rent instead of buying. For them, it is the only affordable and acceptable solution. Their greatest financial obstacle is usually college debt. Most of them which have gone to college are very familiar with this concept, and it presents a debilitating circumstance for them. They are expected to start their independent lives, find jobs and live on their own, but are buried in debt. There are no stepping stones for them but mostly obstacles to overcome.
What to choose
Many millennials consider renting to be an affordable and acceptable solution. In that case, a significant portion of their income is probably going to be spent on their housing. What is interesting is that they would probably spend the same amount of money on their monthly mortgage payments if they purchased a house. So why not buy instead? The main reason is the down payment. It is very high, and usually, more than the millennials can afford or have in their savings. That is the real obstacle to buying a house.
When that major obstacle is overcome, they are ready and willing to buy a home. The surprising part now is where they buy, as was mentioned earlier. Since the price is a major factor, millennials have become more interested in the suburbs, where property prices are lower. But where the millennials are, there is change and development as well. As millennials adapt to the suburbs, the suburbs adapts to them. It is transforming and developing according to their needs, adding many new amenities, creating a good living environment and becoming even more attractive.
Millennials want suburban areas but with an “urban feel.” They want to be close to parks and nature, for recreation purposes, they want yoga classes and health food stores, restaurants and shops. Another important and attractive factor is walkability. They want to be close to everything so that they could walk everywhere. All in all, in the semi-suburbs they have nearly all of the amenities of a city, and they are still close to the city center itself, and they get a better deal on their property in the sense that they get more space for less money.
Much of the world they are born into, millennials are a fast developing generation, according to The Cool Roofing Company, a roofing contractor from Atlanta, GA. They live with, and in what they have, they adapt to the circumstances and are no strangers to change. The percentage of millennials purchasing a house is on a rising streak, and they are slowly but surely taking over the market.