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This Old House - Do-it-Yourself

Millennials Drive Up Boston Real Estate

Written by Posted On Wednesday, 27 December 2017 14:40
Boston Homes Boston Homes

Why do they love Boston?

Millennials is a name that was given to the students who were graduating from college in 2000 that is in the new millennium. Boston has been nicknamed as the city of millennials simply because of the high influx of this generation that have moved into Boston and other cities across Massachusetts. Many of them are college students and, as every college town expects, every September there is a huge increase in the number of millennials moving into the city and statistics show that many of them are making Boston home.

 

Boston has the highest number of millennials in the country, the population is well educated and has a high level of knowledge compared to the other city populations. The millennial population has increased significantly over the first half of the 21st century with nearly a 16 percent increase. Millennials in Boston are a highly diverse group with 43 percent of the population being made up of ethnic groups.

 

Job opportunities for millennials are diverse and plentiful in Boston depending on one's qualifications. Millennials make up the highest percentage of Boston metro area workforce in industries such as restaurants, food services, and bars. Companies in the Boston area seem to like the millennials, this could be because they are energetic and they can deliver quality services enhancing the profits of the companies.

 

Why do millennials love living in Boston?

Most of the millennials prefer living in Boston because; employment, entertainment and academics are easily accessible and also getting around is easy. The drive of millennials moving in has driven up Boston real estate prices. Although many millennials are not purchasing luxury real estate in Boston, they are buying in at the lower end of the real estae spectrum. This lets previous, first time homebuyers sell their home (because of the high demand) and then they buy larger, more luxurious homes in Boston.

 

Creativity in Boston spices up city life

Boston is a huge sports city and they love Tom Brady and the New England Patriots, the Boston Celtics, the Boston Bruins and, of course, their beloved, Boston Red Sox. They are fervent fans and go all out when their teams are playing. T

 

Boston has also been ranked number two as the most creative city. These rankings are not represented by the number of art galleries and performance art venues, but is a result of the technology that  millennials have grown up with which has resulted in internet companies such as Kickstarter, ReverbNation, IndieGoGo where people promote their creative projects as well as manage them.

 

Why rent when you can buy?

There is no question that millennials have decided that Boston is a great place to live and they seem to have determined that due to the high price of renting homes in Boston, that purchasing a home rather than renting may be a better plan for long term weath. With the real estate in Boston continuing to increase in value, to own a home there can be a cornerstone to a solid investment portfolio. Renting a home does not create wealth like owning a home does. Many first time homebuyers find themseves with a much higher net worth only ten years after their home purchase. The same cannot be said for renters.

 

What impact does the millennial in Boston have on real estate?

Millennials have grown to represent 32 percent of the people who are buying homes.  The lifestyles of millennials have an economic impact on everything from the energy market to the way electronics are made, to the growth of the local economy.  Real estate professionals are scrambling to understand the full impact that the millennials are making in the real estate markets across the country. With the home prices in Boston being very high, this has pushed some first time millennial homebuyers to look at the subburbs of Boston. This lets millennials purchase their first home and travel into Boston proper for work everyday. This has driven up home sales in the subburbs of Boston too. One of the cities that many millenials have choosen to migrate to is Quincy MA. Many of the millennials that purchase a home in Quincy MA have intentions on cashing out their equity after a period of time, and buying a home in Boston.

 

What makes the Boston Market Different?

Millennials definitely see the world differently than their parents and grandparents who thought buying a home was the main focus for reaching the “American Dream.” That dream is different for millennials who generally seem to prefer renting over buying a home. Who knows the reasons that are behind this generation’s trend. Time will tell if it is simply that millennials want to wait before committing to buying a home, they have the desire to live in trendier neighborhoods than they can currently afford, or maybe they want to have the freedom to pick up and go with more ease. Ten percent of the millennials asked feel that they are not ready to care of a property and therefore they prefer a landlord to take care of the maintenance cost of the houses they live in. This may drive millenials to purchase homes such as Brownstones, which have very little, if any outside maintanace. However, statistics are showing that these trends are moving in a different direction in Boston with millennials now making up 32% of home buyers in the Boston area. Whether this trend is because of higher rents or lifestyle choices is hard yet to say.

 

Millennials would rather do it themselves

Millennials are more likely to look for a house online rather than go through a real estate agent making it challenging for agents to break into the market.  Almost 50 percent of millennials find their housing using the internet.  Although most millennials end up using a real estate agent to do the final purchase, some choose to use a real estate attorney and do the work themsevles.. They like websites such as Zillow which include numerous high-quality pictures of the homes, interactive maps and detailed home information.

 

What effect does this have on real estate industry?  Boston real estate agents and brokers need to have well-designed websites with pictures and details about the homes that they sell. Real estate companies that do not have a website or their website is of poor quality is much less likely to thrive in the millennial generation. Therefore in order to ensure that your real estate company will succeed in business in this millennial era invest heavily on the internet and in SEO to keep you a step ahead of the competition..

 

Millennials seek out small, efficient space

Fewer possessions and smaller space enable the millennials to have the flexibility and financial stability they wish to have.  They also prefer getting energy efficient appliances so as to keep their bills low. They like comfortable living in small places and many view their home as a temporary home base and not where they will spend the rest of their life. This calls for real estate agents to familiarize themselves with smaller floor plans and also know the benefits of a small living space.

 

Millennials don't shop around for real estate agents

Working with real estate agents is a new idea for many millennials and they won’t spend a lot of time looking. Therefore, honesty, trustworthy and good reputation should be the key qualities a professional real estate agent should have in order to work with the millennials, this is because most millennials interview only one real estate agent and may work with him or her for a long period of time even if there are other cheaper options simply because of trust. Real estate agents should ensure that they build trust with their clients in order to get more referrals from them.

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Dean Cacioppo

Dean Cacioppo Credentials

Dean has worked as a real estate agent, real estate instructor and has years of experience working on the technology side for major Real Estate Brokers, Agents and MLS’s.  Dean has sat on the Board of Directors for multiple MLS’s including being elected to President.  Years of serving on a number of MLS Committees for multiple boards, served on the Strategic Planning Committee for Louisiana REALTORS and participated in many task forces and committees for the benefit of all Real Estate Agents in Louisiana.

Work in Real Estate Technology

Dean has provided live training on technology, direct IT and Technological Support to thousands of Real Estate Agents for over 16 years.  With years of being the go-to guy on technology strategy, training and support for Brokers and MLS’s across the country, you can now have direct access to Dean for your personal technology needs. 

Real Estate is extremely competitive on the web and we specialize in Real Estate Websites and Digitial Marketing for Realtors, Search Engine Optimization for Real Estate and Social Media Marketing for Real Estate.  Please don’t be confused, we are happy to work in all business verticals and have quite a bit of experience in a variety of markets.

For 2019, we have seen an expoetional increase in the ability to generate leads from local SEO for the real estate industry.  This has Google My Business taking a larger share of buyers and sellers looking for real estate online.  We understand that there is a real estate sales cycle that determines how "ready to act" the lead is.  Leads that are aquired for search phrases such as "Realtor around me" or "top realtor in my city" have a much better chance of converting than the indevidual searching for a generic real estate term.  

 

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