Expectations in the Real Estate Market as a Millennial

Millennials, or the current young adult generation comprised of 18-33 year olds, are currently on

the fast track towards “real” adulthood, with most of them stepping up to the plate and taking on

bigger responsibilities, from being worried about submitting college essays on time to getting

good references for a residential lease within the short span of five years. This isn’t exactly the

case with all millennials, some are taking their time and the others are moving quickly.

See, these young adults actually have too much on their plate that it might not be plausible for

them to be moving out on their own yet. There are student loans to pay back or careers to follow

—some actually have a little one on the way. The smartest choice would be to move back to

mom and dad’s house because of all the money that they can save. However, suburbia isn’t

exactly the wisest choice for those who want to jumpstart a career. It’s all about the big city.

Prices for apartments in big cities actually cost more or less the same as the price of a 2-

bedroom home in a more “quiet” area. The big opportunities are attached with a bigger price.

Then again, whether you’re leasing an apartment or buying a house, the pros and cons are

almost similar.

So what should you expect in the real estate market as a millennial?

• Landlords – They’re the ones in charge of making sure that all tenants are sane and able

enough to pay for monthly dues and fees, especially for apartment buildings. This is the

person that makes you fill out the tenant application form and makes screening tenants

seem like a police interrogation.

• Loans – Some people don’t get to pay off their student loans until they’re in their 30s or

40s, lucky ones finish paying within 3 years from graduating. If they have to borrow the

money for college, then of course they need to borrow some money so they can make a

down payment for their home. Choose a loan that has a payment scheme that works for

you and is enough to cover some (if not all) of the payment for your home.

• Location – The closer the area is to the city, the more expensive it gets. As mentioned

earlier, city living is expensive due to the mere fact that it’s the center of most

businesses everywhere. More opportunities are available, thus, realtors take advantage

of this fact. Don’t be surprised to find out that the rent; excluding bills and utilities, for a

single studio unit can cost more than your monthly salary, depending on the area.

• Bills, bills, bills! – Your house/apartment is not officially your “home” if you don’t see your

name printed out in bold letters on top of billing statements. You have water, electricity,

phone, Internet, heating, gas—almost everything in your household is billable. And it

also hurts to know that bills are just the “icing” on your real estate cake. If you took out a

loan, then you can add this to your list of payments.

• Some millennials are lucky enough to be able to rent out places of their own, or buy a

small house before they’re 35. The points listed out above are only some of the potential

obstacles that you might face as a possible homeowner. Know the market properly

before you jump into buying for yourself.

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