Millennials don't want to buy baby boomers' sprawling, multi-bedroom homes

[RadishRose]

and it's creating a major problem in the real-estate market....Millennials aren't buying the large, elaborate houses built by boomers in Sunbelt states like Arizona, Florida, and the Carolinas, The Wall Street Journal reported.

These houses end up sitting on the market and selling at massive price cuts.

"Homes built before 2012 are selling at steep discounts — sometimes almost 50%, and many owners end up selling for less than they paid to build their homes," Candace Taylor wrote in The Wall Street Journal.

Younger buyers are also uninterested in outdated interior design.
"Design trends have shifted radically in the past decade," Taylor wrote in The Journal. "That means a home with crown moldings, ornate details and Mediterranean or Tuscan-style architecture can be a hard sell, while properties with clean lines and open floor plans get snapped up."


Millennials are often seen as a generation of renters, but many of them want to buy homes — it's just much harder for them to do so.

So, I'm thinking those of you with large homes might want to sell while you can get some profit.

 

[C'est Moi]

I don't want to sell my home, so it will be my millennials' (kids) problem when I kick the bucket. It's been mortgage-free for years so whatever they can get for it will be gravy for them. None of them live in this area so they won't want it either.

 

[RadishRose]

Mortgage free and like your location? I'd stay, too.

 

[Uptosnuff]

On the flip side, if you are looking to move or buy a second home, these might be worth a look.

 

[RadishRose]

On the flip side, if you are looking to move or buy a second home, these might be worth a look.

Good thinking!

 

[Floridatennisplayer]

We love our main home where we live.....the dot. Our daughter/son in law and our two grandkids live in the cul de sac behind us. As you can see we are on a golf course. A wonderful park for the kids and the school to our right. I’m on those tennis courts every day in the summer. The little town square is just to the right of the school with lots of shops and restaurants.

 

[Floridatennisplayer]

Oops, wrong pic. Trying to figure out how to delete.

 

[retiredtraveler]

We have a small, mid 50's house on a few acres. We intend to sell in a few years and go into an apartment. We were concerned about selling the home in the past, but around here, there is a good market for less expensive homes, and we have that. As stated, fewer and fewer people can afford the $250,000 - $300,000 houses that are down the street from us, on standard lots. We'll go for a lot less.
Home buying is very neighborhood-centric. Impossible to generalize across the country.

 

[WhatInThe]

There's the cost factor and fear of responsibility. Home ownership means they, not the landlord has to complete and/or pay for repairs.

On one hand it's good that many seem to be living a minimalist's life but at the same time they've become unable to take care of themselves other than throwing money at a problem which is delegating. Yeah materialism can lead to things like hoarding but alot of stuff has an actual purpose like tools, cookware, stationary, etc. Excessive decor or trinkets with no purpose is an issue. But this is another generation which can't even change a flat tire themselves. Some can't cook, swing a hammer,clean without mass marketed chemical products, make a bed or troubleshoot their own computer or tv problems. Sad but many just exist with the same routine and look to media ie the internet or tv for entertainment. At this point I bet there are many that would have trouble reading from a paper book-if it's not a tablet or computer uh oh.

 

[debbie in seattle]

I thought they just wanted to move in with the parents and live off of them.

 

[WhatInThe]

I thought they just wanted to move in with the parents and live off of them.

Spending money on those dull mundane necessities like electric and water just doesn't cut it silly. Their entire life is built around joy. Why bother to fix or even learn to fix a leaky faucet when they could be binge watching the latest hipster tv show.

One of the things I notice that there have been several generations that have been exposed to pop culture psyco babble including take a job doing something you'll love and you'll never work a day in your life. But life is not a platitude. There are things like priorities and necessity. The next party, dvd release, latest fashion and optional accessory filled tech is not. Many can't even endure the time it takes to push a broom in their own kitchen. Cleaning a waste and for fanatics silly.

 

[Trade]

Too many boomers have their houses overpriced. Good on the Millennials for giving them a dose of reality.

 

[OneEyedDiva]

Oops, wrong pic. Trying to figure out how to delete.

If that's still the picture you want to delete..click on Edit Post on the bottom right of the where your reply is, highlight the photo...it will look obscured in blue, then hit delete.

 

[OneEyedDiva]

Many of todays Millennials want to be mortgage free as evidenced by shows like Tiny House, Luxury Tiny Homes and a British production How To Live Mortgage Free. These young people, as well as people from other generations, are doing very creative things to avoid buying standard homes or renting and paying exorbitant amounts for mortgages and rent. Many of the Millennials I have seen on these shows cite the desire to be free from debt, to be able to travel as much as they please and not be saddled to a full time job. Some have careers in the arts and/or are self employed and can work from whatever location they choose to be in.

 

[StarSong]

I agree with RetiredTraveler ^^^. It's impossible to generalize.

In the suburbs of Los Angeles where I live, somewhat larger homes (meaning 4 BR and 2+ BA) still sell very well. Let's face it, Millennials with two kids want a 4 BR house because they want a guest room, home office, media room, or gym.

I can't comment about the salability of 6 BR. 5,000 SF McMansions in retiree areas, which is what the article addresses, but 1900-3000 SF homes in areas with good paying jobs remain in high demand.

 

[Aneeda72]

In our area, houses sell extremely fast. My daughter just sold her half updated plenty of unfinished projects left to do 1950’s house for 180,000. It sold in three days. She bought it 3 years ago for 89,000. Three years ago we sold our 1950’s house which we paid 35,000 for35 years ago.

The house was a money pit. We improved it a great deal, but it’s still a money pit. We sold it for 130,000. 6 months later it sold for 160,000. Three years later, now, it would sell for 210,000 to 220,000.

We bought our current house for 250,000. By fall it should sell for 350,000. As soon as it can sell for this, we will sell. It’s a sellers market. Yay.

 

[fmdog44]

My dad bought our houe in 1954 @ $25,000 and sold it in 1071 for the same amount!! This after many many renovations.

 

[StarSong]

Good grief, fmdog. Talk about a lousy return on his investment.

My mother bought her house in 1970 for $65,000 and we sold it in 2015 for $1.6 mil. My in-laws bought their house for $8900 in 1953. Now worth a little over $600K.

 

[WhatInThe]

A lot has to do with changing/shifting demographics like many moving to warmer weather or lower tax states. Also population increases in many areas. And investors are buying a lot of lower priced inventory(house flipping back to pre boom levels). Here house flippers are keeping prices high by sucking up older less renovated homes among the foreclosures. Just enough to inflate prices, if were the same company I'd have them investigated for price fixing or market manipulation because many are upfront saying they want so many houses per area which just happens to be pretty close the average foreclosure auctions.

 

[fmdog44]

"I want it all and I want it now." The ballad of the millennials.

 

[bernyj]

I agree, half my neighbors kids are leaving with them, when they should be out on their own, back when I was younger, I couldn't wait to get my own place.

I thought they just wanted to move in with the parents and live off of them.

 

[Butterfly]

I agree, half my neighbors kids are leaving with them, when they should be out on their own, back when I was younger, I couldn't wait to get my own place.

Me, either. The minute I graduated (had a job waiting) I moved into this funky little apartment -- it wasn't much but it was MINE!

 

[Jamie cat]

Our agent (Chicago based but does northern 'burbs, too) said few want to move to suburbia anymore - only customers he gets are people who grew up there and want to re-create their childhood for their kids now.
I'd like to move to a cute little 2 bedroom cottage so I could have a garden, small patio, koi pond, etc but I don't want to be out in the boonies. Something with a little elbow room from your neighbors, for sure!

 

[KingsX]

.

When I was a child [1963] my parents bought a nice new 1150 sq ft, three bedrooms, one and a half bath, brick house in a nice Dallas suburb for around $12,000 [and no HOA.]

Today, I would love to buy a brand new house like that... but there aren't any nice new small single-family houses being built around here at any price.

 

[Shalimar]

Many of todays Millennials want to be mortgage free as evidenced by shows like Tiny House, Luxury Tiny Homes and a British production How To Live Mortgage Free. These young people, as well as people from other generations, are doing very creative things to avoid buying standard homes or renting and paying exorbitant amounts for mortgages and rent. Many of the Millennials I have seen on these shows cite the desire to be free from debt, to be able to travel as much as they please and not be saddled to a full time job. Some have careers in the arts and/or are self employed and can work from whatever location they choose to be in.

Absolutely.