Millennials in Vermont have been called the homeownership lost generation, but things may be starting to change. In 2014, John Pelletier the director of the Champlain College Center for Financial Literacy said that one of the biggest factors standing in the way of millennials owning a home was college debt. It’s estimated that approximately two-thirds of students who graduate from college in Vermont end up in debt.
However, in 2015 Realtor.com included millennials in their five top housing predictions for growth in 2015. The forecasted addition of 2.5 million jobs and an increase in household formation put college graduates between the ages of 25-34 (millennials) in a position to emerge again as first-time homebuyers.
Millennials are investing in homeownership. Here are the top 5 reasons why:
1. They WANT to Own a Home. Generation Y is optimistic! Millennials have “buy a new home” on their to-do lists. In fact, it’s estimated that about 75% of them plan to improve their financial situation in the next 5 years and move.
2. They Make up About 65% of First Time Home Buyers. Older millennials are even more enthusiastic than an average buyer and according to realtor.com they are “very likely to purchase within the next 12 months.” It’s this millennial generation that is projected to become the largest new homebuyer demographic in the next 5 years.
3. They Have a Growing Family. This generation values community, creativity and puts family first. Millennials also represent about one-third of the U.S. population and their biggest motivator to buy a home is a growing family.
4. They Found Work. In Vermont, the economy is turning, and in a GOOD direction for millennials. Local businesses, universities, medical centers, out-of-state startups and thriving tech companies now provide more Job opportunities than ever before. Mid-career professionals are flocking to Vermont and bringing the unemployment rate up with them! Unemployment in Vermont was recorded to be one of the lowest in the country at 3.4% just last February.
5. Interest Rates Are Still at a Record Low. Vermont’s housing market is one of the most expensive in the Nation, and affordability is a BIG concern for budding millennials. However, interest rates have remained at record lows and jobs are increasing for Generation Y. They soon may be able to afford homes even in high-cost areas like Chittenden County.
In Vermont, higher priced homes are no longer out of reach for millennials. If you are a seller, now is a great time to consider a few upgrades to make your home appeal to these very eager, and very eligible first-time home buyers.
If you’d like to become the proud owner of a beautiful home in the “Northeast Kingdom”, or any of Vermont’s other beautiful destinations, contact us at PallSpera today. We’d be delighted to help you find the home of your dreams, the home you deserve. Our specialty lies in finding properties that match every buyer’s unique needs and preferences, ensuring that every sale is a perfect match. With over 25 agents on board, our team is ready to begin your quest for the ideal abode.