Homeownership is rising among the millennial population
by. David Hadaway
While those ages 18 to 34 are facing student loan debt, slow job growth and expensive down payments, they are showing signs of financial resilience. Homeownership is becoming more feasible for Generation Y despite difficult circumstances. Across the country, 36 percent of individuals under the age of 35 own a home, according to the U.S. Census Bureau’s “Residential Vacancies and Homeownership in the First Quarter 2014.”
Young Adults Plan to Purchase Homes in the Near Future
This trend isn’t slowing down. BMO Harris Bank sponsored a study that found 32 percent of millennials plan to purchase a home within the next year, 45 percent intend to do so in the next 2 years and 74 percent in the next 5 years.
Many of these individuals in Generation Y are buying a home for the first time. With this new venture, prospective homeowners in this age bracket may benefit from financial advice. Banks and credit unions can assist young buyers by offering guidance.
An Identifiable Target Audience Helps Marketers Solidify a Communications Strategy
One of the first steps in marketing to these individuals is identifying and understanding them. It’s crucial to place oneself in the shoes of prospective homeowners in the 18-to-34-year-old demographic. What do they care about? When are they looking to buy a home? Are they passionate about spending time outdoors? Perhaps couples in this age group are considering having children in the upcoming years. All of these minute, personal details will inform marketers about young adults’ behaviors, preferences and buying habits.