According to the 3rd annual Zillow Group Report on Consumer Housing Trends, millennials are most likely to have an offer fall through when trying to sell their home, make concessions or change the date of their closing. Sellers are now finding it more difficult to sell their home to millennials due to the timeline of their life and millennials are increasingly dissatisfied with the home buying process.
Millennials typically experience major life events such as marriage, kids, job changes and work relocation. They sell the fastest at a rate of 3 months faster than older generations and make more concessions in an effort to close the deal. However, 86 percent say they would do at least one thing differently if they could start over.
Inventory and affordability play a major role when millennials seek out a new home. Almost one third end up in a place they hadn’t planned as inventory and affordability strains their buying power. Many exceed their budgets. Those that exceed budget settle for a smaller home without their desired finishes.
Buying a house isn’t the only constraint hitting this generation hard. Most spend nearly 29% of their household income on rent alone. Rent affordability is worse today than it ever has been, making it all that more difficult for millennials to save up for a new home. Financial stress for renters is the highest and approximately 48% cannot cover an unexpected expense of $1,000.
San Antonio is taking the effort to combat the high cost of housing. Recently the city voted to invest $17 million into affordable housing programs after Ron Nirenberg brought together hundreds of advocates and city leaders for a housing summit. At the summit Niremburg discussed affordability, gentrification, supply and demand and sustainability issues that could plague San Antonio if city leaders don’t act.
San Antonio city leaders are considering a community-wide housing system that would include private and public housing providers. The Alamo City still remains high on the list for affordable living and is paving the way for affordable housing before crisis levels are reached.