According to realtor.com's 2020 National Housing Forecast report, there will be some changes to the Housing Trends in 2020 and the biggest prediction and stand-out fact is that millennials are on the move and are going to shape the housing market this coming new year.
Millennials, who are those born between 1981-1997, are now at the age where they are either finishing higher education, getting married, starting families and most importantly, starting or finally fitting into a comfortable point in their careers. In fact, the largest population cohort in the country is those born in 1990, and in 2020, 4.8 million of those millennials will be turning 30 - the most peak home-buying age. If you are planning on selling your home this coming year, these are important facts to take into account. In 2020, millennials will be holding more than HALF of all mortgages and their share of mortgage originations will be over 50 percent come spring. Just to put that into perspective, this will outnumber Gen X and Baby Boomers share combined.
One myth or stereotype of millennials is their preferred lifestyle or living situations. While it may have been true in the past that downtown lofts or being in the trendiest areas of downtown living were the place to be, prices for downtown living have increased as businesses and developers responded to this trend to create more options to the downtown type of environment of proximity, desire and lifestyle amenities that millennials were looking for. However, a majority of millennials are entering a new phase of their lives where they are becoming more serious in their careers, are building their family or simply would like a backyard for their dog to run around in. Their priorities are shifting and the 1,800 square foot home, backyard, suburban life if becoming their new desire. For millennial families, they aren’t worried about being in walking distance to the juice bar down the street, they are instead driving their kids to school or daycare. The move to affordability trend where millennials are looking for a home in a more family-friendly lifestyle while also investing in affordable housing will continue to trend in 2020.
2020 for sellers has a really interesting outlook due to the new facts and research pulled by this report. With a majority of entry-level buyers looking for an affordable yet family oriented type of homes, sellers who have homes appropriately priced can expect their market to remain competitive. However, if you are a seller with a more higher end type of home, it may not be the hot topic of the year however with patience and thoughtful pricing, you still will be able to see success. It is important to adjust to our local market scenarios which is why as realtors, we are here to help navigate and help with marketing your home to the new majority.