Millennials Continue to Drive the Texas Housing Market
DURATION 4 minute read
Millennials do things differently. And as the largest living adult generation, their choices are reshaping many industries. Low-interest rates are driving many of them to purchase their first home and their unique choices are impacting the housing market.
I spoke with Jennifer Keller, a land development expert and long-time partner of our firm, to discuss how the choices of millennials are expected to reshape the Texas housing market for years to come.
More Millennials are Expected to Buy Homes
Though rates are rising they are still below pre-pandemic levels and continue to be a key catalyst behind the millennial homebuying surge. As the largest age bracket among the generation starts to reach their 30s and major life milestones, Jennifer believes more and more of them are expected to purchase a home – despite the rising rates.
“35% of millennials are looking to buy in the next few years,” Jennifer said. “Many home builders are seeing a high demand for first-time buyers and young families looking for more space.”
Technology is also playing a central role in the home buying process. From digital listing sites to virtual tours, technology has made browsing the housing market more accessible than ever. This trend has not gone unnoticed. In fact, Jennifer noted that digital realty platform HAR saw a 60% increase in buyer research at one point.
“Technology in the home buying process is here to stay,” Jennifer said. “I think you will see even more of it as more millennials begin searching for homes.”
The City or Suburbs?
The migration of millennials to urban downtowns was one of the most discussed trends of the 2010s. The generation prefers walkable, amenity-rich, transit-oriented communities. As a result, many downtown developers were quick to create multi-family housing that catered to this connected lifestyle – causing an urban redevelopment boom.
But as millennials grow older, many of them are leaving the urban lifestyle for suburban living. According to data from the Wall Street Journal, cities with more than half a million people lost around 30,000 millennials to greener, more affordable suburban areas. Jennifer has also seen an uptick in this trend due to the pandemic.
“The previous stay-at-home order gave millennials time to reevaluate their living situations,” Jennifer said. “Now, we are seeing many from this generation looking for space and other options typically offered in the suburban environment.”
Be sure to check out our podcast, Texas By Design, for more insight into the current and future trends in Texas’ single-family housing market. We sit down with some of the industry’s leading minds to discuss news and events impacting our industry. You can watch all our episodes on YouTube, or listen on all major podcast platforms.