Nah, the title is not for the millennials here in Malaysia. They are definitely a very successful group but I did not read any report about them and whether they are going to be the largest group of home buyers here in Malaysia. However, I assume whatever may happen in some advanced property markets will usually happen in Malaysia too, slightly later perhaps. If you are a millennial, here is what’s happening with your peers over at the United States.
Article in cnbc.com According to Realtor.com’s “2020 Housing Market Predictions.” 2020 will be the year when the millennials will be buying the bulk of real estate in United States. In its forecast, Realtor.com predicts that millennials’ share of mortgage originations will surpass an unprecedented 50% in the spring, outnumbering the share of total homes purchased by members of Generation X and baby boomers, at a respective 32% and 17%.
Millennials are starting their families and thus their interest in “family-friendly lifestyles and affording housing” will supersede their prior affinities. Earlier studies have shown that millennials preferred to buy downtown cityscapes with shops and cafes at every turn. Now, the millennials are also considering new options in housing and they look for modest, mid-size city apartments and suburban homes. A lot more in the Article in cnbc.com
Wow, what this tells us is that just one generation would have equalled two generations added up together! I always thought the Baby Boomers and Gen-X should have the most money saved since they are far older… no? Also, look at something which I have written many times. The BABY PRODUCTS in supermarkets should tell us that this is the generation of the millennials. These are the people who were born in 1981 – 1996. The oldest is thus 39 and the youngest at 24.
The ones in early 30s may have babies and just from the supermarkets alone we could already see millennials playing a huge part in consumption of goods and services. Of course, property too. With babies, comes the need for space and that small bachelor’s apartment is no longer sufficient even if it’s very near their office… I think the trend with the millennials in the U.S is not that far apart.
These millennials may not be earning unlimited salaries that would enable to buy anywhere they like. It will have to be a compromise between size, duration, location and price. With the current price being said to be high, thus locations slightly further away from the city centre may most probably be their choices. So, yea, developers should develop homes with millennials in mind. As for the millennials, congratulations. You are now the target of developers. Happy deciding.
Next suggested article: Must-Have items versus Feel-Good Items. Oops.