Let's Talk About the Millennial Myth

Stuart Miles/Stuart Miles - Fotolia

It seems that in every real estate trade publication and blog post there are multiple articles blaming our still-stagnant (though improving) real estate economy on the lack of millennial participation. There's a lot of hand-wringing and concern about student debt loads, about how millennials are not interested in owning real estate, how the American dream of homeownership is fading, and is no longer a dominant goal for today's younger generation.

We have multiple concerns facing our real estate economy, and the broader economy in general. Yes, student loan debt appears to be impacting qualification for some borrowers; tight mortgage and credit standards and stagnant wage growth are other factors inhibiting our true real estate recovery.

I don’t think we can really talk about the millennial buyer until we talk about the baby boomer seller. If everything has shifted a decade, then perhaps we simply would have to wait this period out. My boomer friends are just starting to have conversations about selling their homes, and the "next phase" in their lives. Their kids are long gone, but they're having fun, working hard and enjoying life. They aren't looking for a change…yet. They really don't know what they want to do next. They're comfortable; they have small mortgage balances with low interest rates. Those of them who once had the idea that they'd move from the suburbs to the city have been priced out of that vision – most of the urban development is high-end, which comes with high taxes and even higher condo fees. Even if they might be able purchase with cash, monthly association fees are is often larger than the payment on the former single family home…so why leave?

My 28-year-old son isn't ready to buy a home of any kind; he's still figuring out his life. My 60-year-old friends aren't planning on going anywhere anytime soon.

In a few years, both of these demographics will start thinking real estate. Boomers will finally list and move on to new adventures. This will bring much needed inventory to our market so that the move-up buyers have something to buy. Millennials will figure out what they want, and when homeownership is part of that vision they'll begin buying at the lower end. The whole market will start to re-engage in new ways, with new properties and new ideas.

So the next time you look for someone to blame for our current market remember that the market is not dead – millennials will not be renters forever, and boomers will be moving on to that next adventure.