surbs-millenials-240x170If you are a member of the millennial group, you are maturing and are moving to the suburbs to escape the high rents and to take advantage of better school districts for your children. According to a national poll, only 17 percent of people in this group purchased a home within a major city last year.

Millennials’ ages average 30 years old. This is the normal time to begin a family. Even if an urban setting is desired, it is not a great place to find affordable space.

Currently, rents are rising at a steady rate. Home prices have been increasing as well. As interest rates remain low, housing supply is extremely limited, especially in urban areas. Also, home builders are not heavily interested in city neighborhoods. First time buyers are looking for smaller homes that are more affordable, which means it is difficult for builders to make a profit.

Debt is a factor for many buyers as well. Many potential buyers do not have the savings necessary to make a down payment. Student loan debts are very prevalent among this segment of individuals. Back a few years ago, credit card debt was the major issue facing home buyers. Wages must grow so that the market becomes easier to tackle. Despite job creation, income must be increased.

Almost half of millennials have a desire to purchase a home. If this segment decides city life is the way to go, realtors are trying to woo individuals into the condo or “tiny home” movement. To make homes affordable, they must be smaller in space.

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