You can probably imagine the “typical” American family from the 1950s – mom and dad, 2.5 kids, a dog, and a house with a white picket fence. The couple was probably in their early 20s when they got married and had those 2.5 kids by the time they were 25 years old. The husband drove to the bank and filled out a form for his home loan, then picked up his landline phone to call a realtor…but it’s not 1950 anymore.
Baby Boomers gave birth to Millennials. And now that Millennials have officially grown up, they are changing the way we all do business, especially in the real estate and mortgage industry.
Here are just a few ways Millennials are changing the game, and why it matters.
Who are Millennials – and how many are out there?
By definition, a Millennial was born between 1981 and 1996 and they are a member of Generation Y. When it comes to Millennial home buying, here are a few quick stats:
- In 2020, the average age of a married Millennial was 31 in women and 33 in men. Compare that to the average age of a married Baby Boomer in 1965, which was 21 in women and 23 in men.
- Today, it’s not just married couples buying houses, either. In 2020, 20% of unmarried couples ages 22 to 30 and 10% of unmarried couples ages 31 to 40 were buying houses.
- The average credit score for a Millennial is 680.
- 38% of those under 35 own a home.
- 33% are currently buying to save a house.
- According to the National Realtors Association, 37% of homebuyers were millennials in 2020. This is more than any other generation.
- Millennials made up over 50% of all mortgage applications in April 2020.
So what do all these statistics actually mean? For a realtor or mortgage lender – it’s time to adapt to your fastest-growing and hungry-to-buy market.
How are Millennials changing the housing market and mortgage application process?
As Generation Y grew older, they weren’t considered part of the housing market. Compared to their Baby Boomer predecessors, they were waiting longer to buy a house. You saw many leaving college and moving back in with their parents to save money. Now, older Millennials have paid off their student loans and are ready to buy a home.
“This is the biggest difference in the generational shift: Millennials are waiting until later in life to get married, start a family, and buy a home. Now it’s their time to shine, and their expectations have changed,” said Carrie Powers, Senior Loan Originator with Silverton’s Wilpower Team.
What’s so different about the way Millennials purchase a home? Simply put, everything!
- 99% of Millennials use the internet to get their information about the home buying market.
- Online mortgages are the new norm – and they are expected.
- Millennials want the convenience of a text vs. a phone call. Some urgent matters may require a phone call, but if you can email or text the urgent info, you’re likely to get a reply quicker, and in most cases long before most Millennials will actually return your phone call.
- A basic photo of a house doesn’t cut it – they expect virtual tours and even FaceTime walk-throughs.
- Instead of coming in person to sign, Millennials prefer to use programs like DocuSign to handle major documents.
“It used to be that realtors were heavily relied upon for their access to information about homes for sale, properties, figures, etc.,” said Amy Wilemon, Senior Loan Originator with Silverton’s Wilpower team. “Today, many Millennials do a lot of the initial research themselves online. Of course, this doesn’t mean a realtor’s job is obsolete. In today’s wildly competitive market, homebuyers need realtors for their expertise, negotiation skills, and networking more than ever before.”
The key takeaway? We have to adapt!
Millennials are transforming the way home buying happens by expecting a streamlined, mostly online-based process. And we have to meet them where they are.
Regardless of your age, The Wilpower Team at Silverton Mortgage is here to make your home buying process as easy and stress-free as possible. We offer a convenient online mortgage pre-approval and application process that helps us verify your details in a fast and accurate way. And for those that prefer, you always choose to submit your information manually, too.
Whether you prefer to do everything online or would rather meet with us in person often, when you use Silverton’s Wilpower team, you can rest easy knowing we will handle every detail for you.