3 Big Myths About Millennials Buying Homes

There is lots of misinformation out there about Millennials and home buying—we’re tackling some of the biggest myths…

Would you believe us if we told you that Millennials are buying more homes than any other generation? What if we told you they were buying more houses than any other generation for the fourth year in a row. NAR’s 2017 Home Buyer and Seller Generational Trends study reports that that’s exactly what’s happening, with Millennials making up 34% of homebuyers, compared to 30% of Boomers. LendingTree says that on average 36.1% of all their mortgage requests come from Millennials, a slight increase from the year before.

But if you thought that no Millennials were buying houses, you’re not really to blame. Headlines spreading myths about Millennial homeownership are common. According to the chief marketing officer at the Zillow Group, “That myth that Millennials don’t want to own things is not true…Millennials are not just starting to buy homes; they’re powering the housing market.” Nine percent of 18-34-year-olds told us that they bought a home, apartment, or townhouse with their own money during 2016 alone. So what other Millennial home buying myths need to get busted? We’re tackling three big ones:

1. They’re buying avocado toast instead of houses.

Millennials have been publicly scolded for wasting their money on avocado toast instead of buying houses—but how realistic is that accusation? One Australian millionaire mogul has now infamously declared that their frivolous spending on “smashed avocados” and coffees has kept the generation from home ownership. Not so fast. According to MSN’s calculations, “at a minimum of $8 a place, it would take giving up 4,900 toasts just to afford a down payment on a median-value home in the U.S.” Meanwhile, stats from the Food Institute…

 
 

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The Newsfeed

“As a graphic designer, without the arts being available to me in school I would have been lost as a child and where to take my career path. The fact that schools are cutting art programs is heartbreaking.”—Female, 24, NJ

Applebee’s is putting down the sriracha and giving up on trying to appeal to Millennials. The brand has decided their newer menu items—like a “triple pork bonanza” sandwich—and attempt at a “modern bar and grill” reinvention has “alienate[d]” Boomers and Gen Xers. They’re shutting down more than 130 restaurants and bringing back initiatives from before their attempted “pendulum swing towards millennials,” all-you-can-eat specials and 2-for-$20 deals. Other brands are creating new spin off chains to appeal to fast-casual lovingMillennials, that “[lack] the associated baggage of the old.” (Inc, NPR)

Adults-only ball pits, bouncy houses, and giant slides are sweeping the U.K. Millennials seeking a break from adulthood are flocking to places like Wacky World’s “massive bouncy-castle obstacle course,” which started out as a children’s event. The founder received so many requests that now every event has an 18-and-over slot, and has expanded to 19 cities. This “trend for arrested development activities” is caused by nostalgia, but the influx of marketing and branding leveraging the emotion could be popularizing these playgrounds for adults. (The Guardian)

Facebook is responding to the trend of asking for birthday charitable donations by integrating it right into the platform. Users in the U.S. can now trade in all the “HBD”s they get on Facebook for donations to the cause of their choice: well-wishers will be notified of the birthday along with the selected non-profit, and get the chance to donate. Facebook will ask users which charity they wish to dedicate their day to two weeks in advance, allowing them to choose from 750,000 organizations. (TNW)

Appear Here is the Airbnb of pop-up shops, giving brands their perfect temporary store for the new era of retail. The company finds short term retail space, and has worked with big-name brands like Nike and Net-a-Porter to open “experimental activations” or “test new products.” As brick-and-mortar continues to suffer and long-term stores close, Appear Here says physical retail is still needed, but to “tell a story.” The pop-up industry was valued at $50 billion in 2015, and provides a more low-risk, flexible option to avoid the retail wasteland. (Glossy)

Millennials & Gen Z are turning a profit online and on mobile by re-selling their retail. Thredup, Poshmark, and Depop are just a few of the most popular brands cashing in on the resale economy’s $18 billion market, and some shoppers say they are making $300 a week on the platforms. Some are also using social to sell, often in conjunction with apps or sites, including Snapchat, Facebook Groups, and Instagram. College students on a budget are reportedly especially drawn to resale, thanks to convenience, value, and access to luxury at a lower price. (FN)

“Adult means being entirely independent. I pay my own bills, make all decisions in my life, and feel very in control.”—Male, 20, NY

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