Millennials Enter Local Real Estate Market

Not all millennials are living with their parents and struggling to pay off student loan debt. As the economy grows stronger and the 18-34 year-olds in this demographic group find their employment prospects improving, millennials, particularly those on the older end of the spectrum, are looking to buy homes. At Houlihan & O’Malley Real Estate Services In Bronxville, NY, for example, sales data shows the number of millennials buying homes has risen dramatically, from 28 percent in 2012 to an average of 40 percent in 2013 and 2014, according to Joe Houlihan, the firm’s managing partner.

This trend is echoed nationally, with millennials now comprising the largest group of home buyers (32 percent of all buyers), according to the 2015 National Association of Realtors® Home Buyers and Seller Generational Trends study. Generation X, ages 35-49, came in second with a 27 percent share. Millennial buyers actually represented over double the number of younger boomers (ages 50-59), who made up 16 percent of all buyers; and older boomers (ages 60-68), who made up 15 percent of all buyers. The Silent Generation (ages 69-89) represented only 10 percent of all buyers in the past year.

“Many millennials endured underemployment and subpar wages during the recession, but now they are advancing in their careers and feel more secure. They see themselves getting raises and promotions, and that encourages them to start looking for a home,” says Houlihan. “With interest rates perched at such low levels, now is a great time to buy a house because the mortgage payment might actually be cheaper than renting.”

Interestingly, 90 percent of millennials used an agent to purchase their home, which is the highest share of any generation, according to the NAR study. “Millennials are very savvy and realize that, while they can initially look for a home online, nothing can replace the professional expertise, insights, and guidance of a local, professional Realtor in helping them navigate the complicated process of purchasing a home,” says Houlihan.

According to Houlihan, many of the millennials his firm represents are arriving from Brooklyn, Queens and Manhattan’s Upper East and West Sides. “They are moving to Bronxville for a variety of reasons, including the excellent schools, short commute into Grand Central (28 minutes), and high-quality facilities such as the town’s library and vibrant downtown,” he says. “Plus, Bronxville boasts outstanding restaurants, gift stores, coffee shops, and much more. It really offers the ‘whole package.’”

As an example, Houlihan points to a millennial couple he is working with to find a home in Bronxville. The couple wants to move there primarily because of the easy commute into New York City. They have two young kids and the husband, age 35, works very long hours as an attorney in Manhattan. “They’ve narrowed their search to a townhouse complex so close to the train station that you can actually look out the window and see the tracks,” says Houlihan.

Another millennial couple bought a house in Bronxville Village from one of the sellers Houlihan & O’Malley represented. The wife, who’s 34, is a trader in New York City and was lured by the fact that she could walk to the train. They also moved because they have two children, the oldest of whom is school age, and they wanted to be in the prestigious Bronxville School District.

Even if millennials aren’t currently buying a home, many of them are seriously thinking about it. According to a July 2014 Google Consumer Survey, 18-34 year-olds were twice as likely as 35-54 year olds to say they planned on purchasing a home in the next year. A full half of all millennials visited real estate websites in July 2014, and 36 percent visited real estate websites or apps on mobile devices (comScore Media-Metrix). That means millennials are more than twice as likely as the average U.S. consumer to explore real estate information on a mobile device. “It’s exactly why we just redesigned our website using responsive design so that our listings can be easily viewed, whether on a computer, tablet, or mobile device,” says Houlihan.

About Houlihan & O’Malley

The Residential Sales Group at Houlihan & O’Malley is a boutique agency dedicated to offering clients inspired service, unwavering focus, and a commitment to real estate excellence. At Houlihan & O’Malley, agents who are knowledgeable, involved, and dedicated treat clients to an exceptional level of service. The Residential Sales Group appreciates the needs and time constraints of its clients and constantly strives to embody the company’s motto of “Excellence on Your Side.”

There are currently nine agents working in the Residential Real Estate Sales Group. Together they represent the best combination of dedicated service and real estate skill. Individually, the agents have received numerous awards from the Hudson Gateway Association of Realtors (HGAR) for outstanding sales, which, when combined, total over $300 million. All Houlihan & O’Malley salespersons are members HGAR, the New York State Association of Realtors, and the National Association of Realtors. Managing Partner Joe Houlihan is proud to have been a member of the Board of Directors of the Hudson Gateway Multiple Listing Service.