Tired of rising rental costs and national student debt averaging $36,635 per individual, Millennials (those aged 25 to 40) are trading their apartments and condos for a home of their own. Millennials place greater emphasis on home buying and investing when in a serious relationship, waiting to tie the knot in their thirties versus previous generations who commonly married in their twenties.
According to The Knots annual Real Weddings Study, the average cost of weddings dropped from $28,000 to $19,000 due to the crippling effects of the pandemic. Couples had no choice but to downsize to ‘mini-monies’ (smaller wedding ceremonies) or cancel receptions to remain safe while celebrating this momentous life event. There is also a recent trend to opt-out of the extravagant wedding and instead, save up for a down payment on a home or a memorable honeymoon among this age group.
Millennials are the largest of all the generations and are all at the perfect age to get married; however, most are in no hurry to tie the knot. A large percent are pursuing other life objectives such as career progression, travel or homeownership. In 2019, there were 6.1 marriages per 1,000 people, a significant decrease from previous decades. The average Millennial couple is more likely to invest in a good home, focus on furthering their careers and remain committed to one another rather than sign a marriage contract. Chances are they will buy a home and get a dog before they get married or start a family. Read our Trend Report on Millennials Choosing Dog Friendly Homes.
The trend of favoring a secure future in place of enjoying new marital bliss turns the focus to investing in a secure “meantime” home rather than placing great emphasis on finding a forever home immediately. Millennials purchase homes with the expectation of living in them for five to seven years and restarting the process until finding a permanent place to settle. Fueling Millennial home buying are the favorable mortgage rates. Millennial homebuyers are currently enjoying lower down payment obligations and mortgage rates sitting just above 3%.
Low mortgage rates and a frenzy to buy homes, which began during the Coronavirus, have led to all-time low new home inventories across the city. New home inventories are down 30% year over year, leading to a significant decline in the number of residential homes available, making it a highly competitive market for Millennial homebuyers. Atlanta’s average monthly rent of $1,645, higher than the national average of $1,124 per month, is a contributing factor to Millennials living in the city opting out of renting and favoring purchasing property.
At the end of 2015, the Georgia Labor Department reported Atlanta’s unemployment rate to be the lowest on record since 2007, sitting at 4.9%. During its recovery period following the wake of the 2020 pandemic, the unemployment rate in Georgia sat at 4% as of June 2021.
Atlanta features many fantastic neighborhoods and locations for first-time buyers or those looking to sell. Competitive education systems, a recovering job market and plenty of entertainment amenities make Atlanta the ideal metropolitan hub for home buyers. Consider dumping the landlord and make your own homeowner decisions.
For more information on Atlanta real estate trends and news, visit www.atlantarealestateforum.com.