How Millennials Are Increasing the Demand for Condominiums
Every day there seems to be a new story about how Millennials are changing restaurants or the workplace or some other area of our lives. It goes without saying that Millennials, the generation projected to overtake the Baby Boomers as the largest generation, are making big changes. In fact, they’re even affecting the demand for condominiums.
For the first time ever, condominiums (condos) are in high demand. Millennials are changing the housing market one home at a time, and this means even bigger changes are closer than we think. In this guide, we’ll discuss why Millennials prefer condos over other property types as well as what you can expect when buying or selling your home.
Why Do Millennials Prefer Condos?
The first question that comes to mind with this topic is why Millennials seem so suited for condos? It all has to do with their values and work-life balance.
In the past, it was common for professionals to work in cities and commute to nearby suburbs. As costs in the suburbs continued to rise, more and more Millennials found themselves no longer looking to settle outside of cities. Recently, Millennials have begun to move from the suburbs to downtown cores.
Not only are these areas closer to workplaces, but they’re also close to restaurants, entertainment, and the cultural hub of the city. Unlike past generations, Millennials truly value their work-life balance. The average commute to work in the U.S. is over 25 minutes. Millennials aren’t willing to miss out on almost an hour of time a day in traffic to and from work.
While the work-life balance plays is a big role in why Millennials prefer condos to other property types, that’s not the only factor at play. Here are a few other reasons more young people are choosing to say goodbye to the single-family home in the suburb and say hello to condo living:
- Less maintenance – Millennials value their free time. They don’t want to spend it mowing the lawn, trimming hedges, or maintaining living spaces. With a condo, these amenities are usually taken care of by community staff.
- More affordable – As more young people struggle to overcome large student loan debt and lowered wages, it’s less likely that they can afford larger homes. Condos generally offer more space options without the large price tag.
- Smaller families – Millennials are taking their sweet time and aren’t in a rush to settle down. Smaller families mean there’s less reason to have a larger home.
- Amenities – Finally, condos simply come with more amenities than most homes do. Things like pools, gyms, green space, and lounge areas can be a big perk for Millennials who value these things.
What Does This Change Mean for the Housing Market?
Frankly put, the condo market is booming. In the past, it wasn’t always considered a smart investment to purchase a condo over another property type. Today, the tables are turning. Learning more about how Millennials affect the housing market will help you sell your home fast.
Especially in large cities, the real estate market for condos has skyrocketed. As more young buyers enter the housing market for the first time, they’re on the lookout for the perfect starter home. For many, this means looking at condominiums.
Because most cities only have a limited supply of condos, demand is higher than it’s ever been. Condos are now an excellent investment property, and they also are the ultimate in Millennial living.
The Future of Millennial Homebuying Trends
It’s clear to see that Millennials aren’t slowing down any time soon when it comes to the housing market. Condominiums are becoming the first choice for many young people looking for an urban, cost-efficient option that doesn’t come with the drawbacks of a single-family home. When Millennial’s buy a home, they’re focused on their values and work-life balance.
While that’s not to say that those Millennials have all given up their dream of owning a larger home one day, it’s exciting to see this shift hit the housing market. As more Millennials continue to buy their first (and second) homes, this demand for condominiums will only continue to rise.