Why Puget Sound Millennials Are Finally Looking to Buy Homes
There's no doubt that the Seattle area housing market is competitive. Many people assume that rising property prices across the Puget Sound region have made it harder for young people to afford to buy a home, but they are wrong. Millennials are quickly becoming the predominant demographic of home buyers in the region.
The reason behind this trend is that millennials are growing up. Yes, they waited longer than previous generations, but they have now reached an age where buying is feasible. In fact, the oldest millennials turned 38 this year. In May, 45 percent of home transactions across King, Snohomish, and Pierce County were accounted for by Millennials.
While many millennials would prefer to live in and around Seattle's most popular urban neighborhoods like Wallingford, South Lake Union, and Ballard, new houses aren't being built at an affordable price point there. This has contributed to the high cost of living in Seattle. Subsequently, this has led millennials to look outside of the city for homes. This has recently made the suburbs a more popular place for this generation to live. A one hour drive south of Seattle, the smaller city of Tacoma became the nation's hottest housing market this year. The ‘suburbs’ may very well be smaller cities close to larger urban areas — these still afford the richness of city living (including employment opportunities) at maybe lower home prices**.
Most millennials want a home with two or three bedrooms, and at least 1,200 square feet — for around $500,000. In most desirable Seattle neighborhoods, a home that meets these requirements (that isn't a fixer-upper) cannot be found for under $700,000.
Nowadays, many transactions involve parents or other family members helping their children buy a home. In fact in Seattle, 25 percent or more of sales involve a co-buyer. But 69 percent of millennials believe that buying a home will be the most astute financial investment they will ever make*. For millennials who do not have co-buying as an option, looking outside the city limits may be the answer.