The Rise of Young American Homebuyers
- 2 min
What you'll learn.
- Why the rise of young homebuyers
- How much young homebuyers can afford
On average, 67% of young American homebuyers will be first-time homebuyers in 2021. As you can see, there’s a clear growing demand for homeownership among young Americans across the nation. In the next few years, the Gen Y generation will be turning 30 and Millennials are going to be in their early 30s. When a significantly sized population of people is approaching a historically prime age to start on the home buying journey, signs point to a booming housing industry on the horizon.
While we’ve already been seeing a rise in first-time homebuyers looking to purchase, we’re anticipating another wave to flood the housing market in the next few years. Now’s the time to shift our focus, double down on our efforts, and gear up for what’s to come. Let’s run through a few things to keep top of mind when we’re working with first-time homebuyers.
Meeting young Americans needs.
The saying, “You don’t know what you don’t know,” is a good way to think about young Americans pursuing their homeownership dreams. To effectively meet the needs of this group of homebuyers, homebuyer education should be moved to number one on our list. As we form relationships with leads and clients, our conversations should be centered on being transparent and informative. This way, trust is established at the beginning. In turn, you’re building a brand based on reliability.
An important part of the home buying process is saving for a down payment. To many clients, this is a hurdle that makes their home purchase feel out of reach. Depending on the loan program, down payment requirements range from nothing all the way up to 20% of the purchase price; fortunately, there’s a variety of first-time homebuyer programs available – some that require little to no money down and/or closing cost assistance. This is where young Americans can benefit from seeking advice from a mortgage professional early on.
How much can young Americans afford?
Between state sponsored programs, grants, mortgage credit certificates, and 100% financing options, young Americans looking to purchase may be able to afford more than they think. With all the cards laid out in front of them, the possibilities become clear. For anyone thinking about homeownership, regardless of their personal experience or perception of what it takes to achieve it, what’s important for Atlantic Bay is to help them realize knowledge is power.
When talking with prospective homebuyers, while we’re focusing on the importance of saving, another point of focus should be on the financial advantages of owning a home. Young Americans are interested in planning for a secure financial future; it’s our job to let them know how homeownership can work in their favor and align them with their goals. Whether it’s highlighting the financial strength that comes from building equity through homeownership, talking about the benefits that come with having stable monthly payments, or running through a list of possible tax benefits and deductions, hearing about “what’s in it for them,” both short term and long term, can be a huge selling factor with this population of homebuyers.
So, where do we go from here? Let’s focus on preparing young Americans on what to expect during the home buying process. Once this is the primary focus of our processes and conversations, the more efficient and enjoyable the home buying process will be for homebuyers – not just now, but also in the years to come.