Jim Paolino, LodeStar Software Solutions
There has been a lot of discussion about the Millennial Generation, those born from 1982 to 2004, and their effect on the economy. This effect has been seen most dramatically in real estate where this generation is slow to become home owners compared to their parents.
Millennials typically wait to start families, have an average student loan debt of $29,400, and average starting salaries of only $44,000 if they were lucky enough to land a job out of college. Other factors like the Dodd-Frank regulation’s Qualified Mortgage (QM) and Ability to Repay(ATR) rules have tightened credit and made home buying next to impossible for many who’d like to buy a home. These economic concerns aside, many Millenials just feel like there is no pressing reason to buy a home.
The realtors that will be successful in the 21st Century embrace these generational differences and adapt. While the task may seem daunting at first, with a few sensible insights on how Millennials think about home ownership, your interactions and sales can improve tremendously.