A change in philosophy of amenities, home sizes, and prices are just a few of the ways the Jacksonville Daily Record says millennials are changing the housing industry.
“We are seeing the size of new homes trend down,” said David Cobb, Regional Director with Metrostudy, which provides research, expertise, and analysis to support strategic business decisions at the local, regional and national market level of the residential construction real estate and housing market.
According to the report, Cobb presented information to the Northeast Florida Builders Association, and said that most homebuyers by 2030 will be millennials or younger.
Millennials (23-38 years of age) will be 34-49 years-old by 2030. The largest age group in 2030 will be 39-years old, and the youngest baby boomer will be 66-years old.
The report, with information from Metrostudy and Neustar, revealed that 51.9% of new home sales in Jacksonville, Florida, were by millennials.
Cobb added that the average home size is 2,600-square-feet, which is almost double than the average home in 1973. Young buyers, however, are searching for something different, including energy efficient features, smart technology, and patios.
He said Salt Lake City, Utah, which has millennials responsible for 70% of home sales, is an example of this new trend.
A study by the National Association of Realtors (NAR) in May found that Madison, Wisconsin, had the highest percentage of millennial as a share of its population in 2017.
The report stated that millennial made up 32% of Madison’s population in 2017, and the share of millennial moving to the area, when compared to non-millennial, was 75%.
Salt Lake City had the second-most millennials at 31%, with Seattle, Oklahoma City, Denver, and Durham, North Carolina, all reported a millennial population share of 29%. Other cities highly attractive to millennials were El Paso, Texas (27%); Omaha, Nebraska (28%); Bakersfield, California (28%); and Grand Rapids, Michigan (27%).
“An overwhelming majority of younger and older millennial homebuyers responded that their strong desire to own a home was the primary reason that they purchased their home," NAR Chief Economist Lawrence Yun said. "As long as supply keeps up to meet demand, and prevents costs from rising too high and too rapidly, these identified metro areas are likely to see an uptick in purchases from millennial homebuyers—including Oklahoma City.”