At the beginning of the year, @properties co-founders Mike Golden and Thad Wong predicted the 2020s would be the decade of the millennial homebuyer. Well, the decade started fast and furious. In August, the Wall Street Journal reported that millennials now account for over half of all new home loans.
In the latest installment of @ The Market, Mike, Thad and @properties VP of Brokerage Services Grace Kaage dive into what’s driving the generation’s shift to homeownership in such a big way.
“Millennials are entering this phase of life where homeownership and stability are more meaningful than ever, and COVID-19 has accelerated that,” said Golden.
“Millennials are going to fuel the market over the next 10 years,” added Wong. “The focus on housing will do a tremendous amount for our community, and millennials will be driving it every step of the way.”
Throughout the webcast, they focused on a few Chicago-area communities where this trend is playing out. One of those areas is West Town. Despite the headlines that today’s buyers favor single-family homes over condominiums, West Town condo sales have increased 8.7% year over year. Kaage noted that record low mortgage rates have created a favorable own-vs.-rent scenario between West Town condos and high-end rental properties in the downtown core.
While some first-time buyers are purchasing larger condos in the city, the panel noted that others are making the move to towns like Naperville, which offer the benefits of suburban living along with urban conveniences and amenities. Meanwhile, low inventory in many suburbs is putting upward pressure on home prices and spurring activity in adjacent, lower-priced towns. In the case of Naperville, the beneficiary is Plainfield, where unit volume is up over 10% year to date compared with 2019.
For more fall 2020 real estate market insights, watch the full @ The Market video below.