Hispanic Millennials & Housing

Nielsen recently released their report “Millennials – Breaking the Myths” and today I want to focus on the information reported about Hispanic Millennials.

Of the 77 million Millennials, 19% are Hispanic. This group (age 18-36) is the most racially and ethnically diverse than any previous generation. According to this report, Nielsen expects the Hispanic population to grow by 167% by 2050.

Millennials are 14% first generation, and 12% second generation Americans, keeping strong ties to their home country, culture and language. For example:

1. 63% of the Millennials feel it is their responsibility to care for an elderly parent, according to Nielsen: “this is partially tied to the ethnic diversity of the generation. Typically ‘Hispanic and Asian Americans’ have cultural expectations that elderly family members will be cared for by the younger generations.”

This can help you to understand why when a Hispanic Millennial is looking for a home, they are requesting that extra bedroom.

2. 65% of Hispanic Millennials are U.S. Born and are more bilingual than other generations

  • In 2003, 34% were Spanish dominant, 44% English dominant, 22% bilingual
  • In 2013, 31% were Spanish dominant, 31% English dominant, 38% bilingual

“Today, the bilingual Hispanic is the dominant group within these Millennials.” According to this report, this is telling us that “Hispanics are choosing to speak more Spanish and maintain cultural ties.”

Where are they looking for homes?

This report revealed “62% of the Millennials prefer to live in the type of mixed-use communities found in urban centers where they live in close proximity to a mix of shopping, restaurants and offices. This is the first time since the 1920s where the growth in U.S. cities outpaces growth outside of the cities. And, 40 percent say they would like to live in an urban area in the future.

The “American Dream” is transitioning from the white picket fence in the suburbs to the historic brownstone stoop in the heart of the city” and the markets with a major concentration of Millennials reflect this desire:

Top 10 markets for Millennials (by %):

  • Austin, TX (16%)
  • Salt Lake City, UT (15%)
  • San Diego, CA (15%)
  • Los Angeles, CA (14%)
  • Denver, CO (14%)
  • Washington, DC (14%)
  • Houston, TX (14%)
  • Las Vegas, NV (14%)
  • San Francisco, CA (14%)
  • Dallas-Ft. Worth, TX (14%)

Do you have an urban center in your market place? If you already know that 40 percent say they will like to live in an urban area in the future. Are Hispanic Millennials a part of your business plan?

Who Says Millennials Are Not Buying Houses?

Millennials Moving InWe have often gone against the grain to promote the fact that Millennials have a stronger belief in homeownership than previous generations. Some have strongly disagreed. Well, a new study from the National Association of Realtors (NAR) found Millennials now account for the greatest market share of recent home purchases.

NAR’s Home Buyer and Seller Generational Trends Study for 2014, revealed that Millennials comprised 31 percent of recent purchases, leading all other age groups. Here are the percentages for other generations:

  • 30% – Generation X
  • 30% – Boomer Generation
  • 9% – Silent Generation

NAR chief economist Lawrence Yun explained:

“Given that Millennials are the largest generation in history after the baby boomers, it means there is a potential for strong underlying demand. Moreover, their aspiration and the long-term investment aspect to owning a home remain solid among young people.”

Other findings from the report:

  • 87% of recent buyers age 33 and younger said they consider their home purchase a “good financial investment”
  • Millennials were most likely to have a simple desire to own a home of their own as their motive for purchasing
  • The median age of recent Millennial buyers was 29
  • The median income was $73,600.
  • 87% purchased an existing home, and they plan to stay in their homes for a median 10 years.
  • Younger buyers relied more heavily than older groups on real estate agents to help them navigate the process.

Bottom Line

Millennials are in the market and recognize the importance of using a real estate professional to guide them to the closing table.

Millennials: Optimistic & Ready to Buy

YoungFamilyHouseA recent survey by the PulteGroup revealed that the Millennial generation has a more optimistic outlook regarding the American economy than other generations. According to the survey, 54% of Millennials believe the economy is in better shape today than it was last year compared to only 41% of the total population.

It seems this optimism is impacting purchasing decisions as 74% of Millennials view now as an excellent or good time to buy the things they want or need. Jim Zeumer, vice president of corporate communications for the PulteGroup explained:

“No other cohort of adults is nearly as confident about their economic future as the millennials are right now. This is definitely a change, as millennials have regularly been viewed as the disenfranchised generation vastly affected by the fallout of the recession.  But now, with an increased sense of optimism, this generation is starting to feel as though they have the resources available to lead the lives they want or expect to in the future.”


Specific to real estate, the survey indicated:

  • 85% of Millennials plan to purchase a home in the future
  • 49% plan to purchase a home in the next two years
  • Of those planning to purchase in the near-term, 56 percent are current homeowners and 41 percent are renters
  • 65% prefer spending more money on a home that is move-in ready compared to doing renovations
  • 58% increased their interest in purchasing a home in the past year as the positive attributes of homeownership resonate with this generation.