Millennial homebuyers, according to Denver Post’s Aldo Svaldi, the nation’s largest generation is starting to show signs of interest in suburban living. Trading up fast paced downtown styles, Millennials, born between 1981 and 1997, expect to retire to more pragmatic and family-orientated homesteads. At 83 million strong and being the most racially diverse and educated, many have wondered if this generation would seek for less dense and spaced out living arrangements. According to Realtor.com’s “2020 Housing Market Predictions” in 2020, millennials homebuyers will be buying the bulk of real estate in the U.S. which will greatly influence real estate trends moving forward.
Joel Kotin of Chapman University debates that, “the strongest population gains are coming in the suburbs, not the big cities. For every one millennial that settles in an older urban area, another four are moving into the suburbs, where homes are more affordable.” (Svaldi, 2020).
The affordability is a huge factor but so is overall square footage and space. As Millennial couples’ families grow, they want and need more space. Take recent Sustainable Design Build customers, Simon and Rachel Schwartz. They lived near Wash Park and Simon vowed to never leave his neighborhood located directly in Denver’s city core. This all changed after Simon and Rachel married and had a baby on the way. For that reason, they sold their small Denver bungalow and recently moved to the Denver suburbs. They have found themselves with a single-family home with more space, bedrooms and complete with a yard. As a General Contractor, Sustainable Design Build just lent some help by remodeling and updating the 3 bathrooms of their home.
Moves such as the Schwartz’ are setting off flags to all sorts of analysts who are trying to decipher where the demand on increased density lies. Jason Shepard, a partner at Denver-based Atlas Real Estate argues, “The data unequivocally points to Millennial homebuyers wanting to live in urban settings… The lifestyle of living closer to the urban core, less commuting, of going with smaller space is a tailwind that will remain.” (Svaldi, 2020). Meaning the demand for these types of housing and lifestyle will always be a main mover in the real estate industry but this has not changed for a long time as its accessibility remains for those who aspire function and affordability. But for those with the means and the circumstances, like the Millennial generation, fleeing to the suburban neighborhood is now a strong interest.
Data from urban studies expert, Richard Florida, of CityLab states that, “young adults are fueling a renaissance in the nation’s inner cities, drawn to the perks that come with density.” (Svaldi, 2020). Many analysts have argued that proximity to work, walkability, and community entertainment are the focal points the now aging generation. However, the opposing perspective acknowledges that those wants were derivative to bad housing and inflation in the past – making the choice for most.
However, the experience Millennial homebuyers faced shows that it has created a new type of community desire which is attempting to combine the perks of urban living with the spacious calm the suburban neighborhoods have to offer. The Urban Land Institute from their Emerging Trends in Real Estate report for 2020, have coined the term – hipsturbia – for the crossbreeding of these two neighborhoods. Wanting the best of both worlds, Millennials are shaping the new cul-de-sac from the 1970’s and 1980’s by creating micro-communities with walkability, school districts, and safety as the driving factors.
With the current reality of the COVID-19 pandemic sweeping the globe, it’s safe to say that markets are showing more signs of volatility. Regardless, the largest generation in the nation is making waves shaping a new type of suburban living which calls back to the days of old neighborhood block parties and updating it with modernity found in density conscious developments.
Sources:
Millennials are projected to buy the most houses this year-this is how they can prepare for it. Published Tue, Feb 4 20202:35 PM EST Updated Mon, Mar 9 20202:42 PM ED Addie Joseph https://www.cnbc.com/2020/02/04/millennials-to-buy-the-most-houses-this-year-how-they-can-prepare.html
Emerging Trends in Real Estate. Urban Land Institute. Retrieved from https://ulidigitalmarketing.blob.core.windows.net/emergingtrendspdfs/ET2020FallMeeting.pdf
Svaldi, A. (Feb. 10th, 2020). More millennials are considering the unthinkable: Life in suburbia. Denver Post. Retrieved from https://www.denverpost.com/2020/02/10/denver-millennials-considering-suburbs/?trk_msg=APEC19SOGSK431N23CFQA5NC7S&trk_contact=IKFGJQMNHPH3SJ8EIJOO1OTCBC&trk_sid=LSFHK2T7TMS1I8TJS81JRRTGVK&utm_email=A4CD940954DB94B50490351393&utm_source=listrak&utm_medium=Email&utm_term=https%3a%2f%2fwww.denverpost.com%2f2020%2f02%2f10%2fdenver-millennials-considering-suburbs%2f&utm_campaign=denver-mile-high-roundup&utm_content=manual
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