Generation Ys, who have always fancied the finer things in life, are bringing this mentality to the real estate market by rapidly acquiring high-priced real estate. And they are not stopping at one purchase; this generation is more likely to buy several properties as investments.
So what’s behind this trend? It comes down to economics. The low interest rates and lower real estate prices of recent years have made it easier for Gen Ys (now in their 20s and 30s) to extend their love of luxury into the real estate market. Not for them the starter bungalow of their grandparents’ generation. This group brings the same enthusiasm they have for designer duds to million-dollar condos.
We also have the tech boom to thank. Many young tech titans have become wealthy, now owning stock in various technology companies. With extra cash and high-powered jobs, many are seeking to diversify their portfolio. And how better than by purchasing REAL real estate?
Finally, social media has helped developers and brokers promote their products to this highly tech-savvy generation of buyers. One new condo development in Manhattan reached out through Instagram, the photo-sharing website. When it hit the market, the 24-unit development sold out within a month.
Gen Ys know what they like and have what it takes to get it. And as a result, they’re shaping the real estate industry now and into the future.