The Quest for the Nest
One group survived Y2K, the Great Recession and social media sharing. The other, the Summer of Love, gas shortages and the Cold War. But while you may think Millennials and Baby Boomers don’t have a lot in common, these two very different generations share at least one thing: the desire to find the perfect home to call their nest. So much so, they’re disrupting the real estate market with similar demands, skipping the McMansions of the 2000s in favor of smaller, more modern-looking homes that are in walkable areas miles from retail centers.
Are you a Millennial looking for your first nest or a Boomer looking for a new or second nest? Read on. (Sorry Gen X, we’ll have to cover you in another blog…like you care, right?)
Millennials – The First-Nesters
Generally speaking, Millennials are waiting longer to buy a home as a practical and financial decision. Nearly 23% of these “First-Nesters” still live with their parents (up 13.5% since 2005).* Why? To save on rent so they can pay off that onerous student debt and to save what they can for a future down payment.
When they do move out, they’re bucking the trend of their parents and grandparents. More unmarried couples are buying homes together, foregoing the cost of a big wedding and putting a priority on homeownership.
And growing up in the world of home-improvement shows on TV and online have given them the confidence to tackle any home project so they don’t need the place to be perfect.
Boomers – The Empty Nesters
Think of Empty Nesters as puttering around the empty halls of their home or moving to a retirement community? Hardly. With the freedom of the kids having moved out – or never having kids in the first place – they’re entering the most independent time of their lives, going from “Empty Nesters” to “Full-On Lifestyle Nesters.”
A good portion of Boomers are looking to find the perfect home that fits their lifestyle and to upgrade with all the features they love. Others are looking for a second nest—another home in the city or a more vibrant neighborhood where they can spend summers, a week or just the occasional weekend. Whether it’s a new nest or a weekend roost, they’re open to a lot of opportunities.
Be Ready To Get Into That Nest
With a housing supply shortage due to both of these groups in the market for the same type of home, along with investors who are snatching up homes while rates are low, finding the right place might be a challenge. So it’s important to be ready when you DO find the place you love. Here’s what to do:
Find An Agent
First and foremost, get yourself a local real estate agent. They’ll know the area you’re looking at and will most likely have options you hadn’t thought of.
Look at Loan Options
While making a down payment of 20% or higher lets you eliminate Private Mortgage Insurance (PMI), there are many options for qualified buyers who wish to make a smaller down payment.
A Longer Mortgage For More Stability
A popular mortgage product for both groups is the conventional 30-year mortgage. Locking in at 30 years offers the budget stability of knowing a payment isn’t going to increase at any point and offers the flexibility whether you want to sell in a few years or make this your forever nest.
In the end, whether you’re a child of the ‘60s or the ‘90s, we all share the same desire to find our very own nest that’s simply the best. Happy nest building!
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