Real estate may flourish with millennials leading the charge
While older generations may be more interested in downsizing, millennials are having children and growing in their careers. Buying a home is the next logical step. With positive returns potentially on the horizon, millennials are on the right track. The data says real estate has the capacity to be the best investment, and millennials are on board.
Coming of age
Millennials are coming of age under difficult circumstances. Raised in the era of participation awards and identity politics, they were encouraged from childhood to assume that changing the world was a modest ambition. Sadly, their actual prospects are not so lofty, and not always through any fault of their own.
A recent report by the Foundation for Young Australians says millennials are more educated than any previous generation, but their degrees are relatively worthless in the labour market. Despite this, they begin their working lives with a huge HECS debt.
Beginning a life with a huge HECS Debt
The biggest financial concern in the US for new millennials is school/student loans and the trend is growing in Australia.
The jobs they do find will be increasingly casualised. An academic research report by workforce diversity specialist and consultant Conrad Liveris found that fulltime job creation has stagnated since it peaked in 2008, which will mean most of the country’s young people are unlikely to work full time for a substantial part of their career — if at all — despite most expressing the desire for permanent work.
Local has more value to Millennials
FYA chief executive Jan Owen says “The endgame is you want a secure place to live and have a family. Where you live is where you build your community. Your sense of social cohesion is diminished if you are always moving. They (millennials) value offline even more because they are constantly online. Local has more value to them. It becomes more important in this hyper-connected world.”
Medium Density could be the answer
A recent report by Price Waterhouse Coopers concluded that capitalising on existing cities, making their middle ring medium density “isn’t optional, it’s unavoidable.” And the people who resist these developments? They are mostly boomers, says Ben Hendriks, managing director of Mecone, a planning consultancy in Sydney and Melbourne. The higher the median age, the more aggressive the resistance from locals to increasing density, he says.
“Walkability lifestyle”, what are Millennials looking for ? Convenience, connectivity, low maintenance, employment and affordability? Feel free to comment, there seems to be a lot of conjecture about what Millennials are looking for in the property market.
More about Social Innovation and how we can provide more to encourage ‘Millennials’ to regional cities.
Next week : Digital disruption and Real Estate – Introducing Blockchain and Bitcoin