September 12th, 2013
Today’s mortgage news focuses on generation Y and single people starting up the next real estate boom, and whether or not a lot of rentals ruins a neighborhood.
The New York Times ran an article on how the increase in rental homes is changing the feel of the neighborhood, and not always for the better.
The homeowners’ major complaints are:
Realtor magazine (Realtor.org) is reporting that there is a rise in single people purchasing homes.
More Americans are opting to live alone, with single buyers making up a quarter of all home purchases last year, according to the National Association of REALTORS®. In the U.S., there are 33 million one-person households, and living solo is becoming an international trend, MSN Real Estate reports.
Why are so many living alone? People are marrying later, divorcing more, and living longer, sociologists say.
The homebuyers are also ensuring their home has good resale value, and asking to buy into good school districts. Buying solo does have some difficulties such as obtaining financing which is easier for dual-income purchasers.
Yahoo Finance is reporting that Millennials are starting to buy houses, and they’re not interested in McMansions. Their priorities are usually their careers, and being near hubs so they can take advantage of travel opportunities, experiences and friends.
Sherry Chris, CEO of Better Homes & Gardens Real Estate and co-author of the new book Next Generation Real Estate, notes that we care about Gen Y when it comes to real estate because across the country there are 100 million people in this category — a third of the population. And despite the stereotype of millennials being lazy and not caring about home ownership, Chris says that over 70% of those surveyed said they’d like to buy a home in the next two to three years.
Many are buying homes with their partners before they marry. And Gen Y are more interested in functionality rather then a large home. Plus they want a property that fits their lifestyle. So if they’re gone a lot, they don’t want a lot of lawn that will need to be watered and mowed.