Millennials are projected to surpass Baby Boomers in population this year as their generation continues to grow to 73 million and Boomers decrease to 72 million. The largest living generation is reaching the prime homeownership years and are driving the housing market forward. More and more, Millennials are looking to relocate to cities that provide better job opportunities and lower living expenses, and Orlando is currently in their eyesight.
MILLENNIALS AS A TARGET MARKET
With Millennials becoming the largest market, it is critical as real estate agents that we understand what drives them and what are their most desirable markets. Meyers Research defines Millennials as those born between 1980 and 2000. Currently, the largest share of Millennials is just under 30 years old. The perfect age to begin considering homeownership.
According to the U.S. Census Bureau:
The homeownership rate for those under 35 was 36.5% in 4Q18, up from last year, but far below the 39.1% historical average. The homeownership rate for those 35-44 (including both Millennials and some Generation X) ticked up to 61.1% in the fourth quarter but again is off by a higher margin compared to the 64.9% historical average.
WHAT DRIVES MILLENNIALS TO MOVE
When Millennials were asked if they had ever seriously considered moving out of their current city, 60% of respondents said yes. Of those respondents, 60% of Millennial renters are open to moving compared to 40% for existing homeowners. This means that currently owning a home discourages Millennials from moving to a different city.
So, what drives Millennials to move to a different city? Meyers Research discovered that the main driving factors include:
- Job opportunities (30% of respondents)
- Affordability (20% of respondents)
- Lifestyle (12% of respondents)
The top five locations that meet those requirements and have become the most desirable markets for Millennials are Dallas, Houston, Austin, Phoenix, and Orlando.
THREE FACTORS THAT DROVE ORLANDO TO TOP 5
Why are Millennials drawn to Orlando? The first factor is employment opportunities. Though concentrated in a few sectors, job opportunities are plentiful with a 4% job growth YOY.
Very low Millennial salaries cost Orlando a higher ranking in the Meyers Millennial Desirability Index (MDI), however, the cost of living mitigates some of the effects. According to Zonda, 85% of total new housing units planned had a minimum price below the local FHA loan limit of $314,827.
Finally, Millennials are known for their love of cities and ability to live, work, and play in a single urban area. Neighborhoods like Downtown Orlando and the Millennia area are hot spots for Millennials because of their easy access to public transportation, shopping, dining, and proximity to many jobs.
With the Millennial population growing and the generation reaching the prime age for homeownership, it is time we begin leveraging the desirable qualities that Orlando has to offer.
Millennials: Ready to get into your first home? We can get you started with that process by educating you on the real estate and lending parts of a transaction, getting you preapproved and ready to search! Call or text us at 407.801.9914 to get started!