Millennials Continue to Discover Suburbia
In the early 2010s, it looked as though millennials might never jump on the homebuying wagon. The financial crisis had left the housing market, among others, in shambles. That meant that the lower-risk rental was the popular choice. But that has begun to change in recent years. Homebuying is back “in,” and millennials, typically first-time buyers, are embracing it head-on. By some estimates, millennials are expected to purchase $10-million in homes in the next decade.
What will this look like in South Florida? As the urban housing market is peaking, millennials will look outside the main metropolis, such as Miami and Tampa, to suburbs and smaller cities to buy.
Why Millennials Are Choosing Suburban Homes
For a while, it wasn’t clear whether or not millennials would choose – or be able – to follow their parents’ generation’s footsteps and choose home ownership over higher rents in hip urban centers.
Many millennials are choosing to invest outside of the downtown core because, simply put, housing is less expensive. As they settle and start families they need more space than they can afford in the city. According to a survey of millennial homeowners in the U.S., about 40 percent live in the suburbs, while 30 percent live in cities. This gap is expected to widen in years to come.
South Florida Is Attracting First-Time Buyers
Today, millennials make up almost 35% of homebuyers across the country. At the same time, Florida consistently makes the list of top 10 states to invest in real estate. Whether driven by home value, school zones, or lack of state income tax, millennials have discovered this prosperous market.
Florida has tons of variety when it comes to property: skyscraper condos in bustling urban centers, luxury ocean-front homes in mid-sized cities, and plenty of single-family homes in between.
In the Miami-Fort Lauderdale-West Palm Beach region, more than 25 percent of millennials own their homes. Almost 75 percent are renters. Homeowners are still the minority of this generation, but predictions suggest this may change in the coming years.
Simplify Real Estate Transactions by Hiring a South Florida Residential Real Estate Attorney
Some millennials are looking to buy homes, and many are choosing to rent. Either way, there’s strong evidence that millennials are migrating to South Florida’s sunny shores and flourishing economy. Whether you’re a seller or a residential developer, it’s a great time to take advantage of the warming Florida housing market.
Consider involving a South Florida residential real estate attorney at Schecter Law from the first phase of any transaction. Learn more by calling us at (954)-779-7009.