Real estate professionals in the Jacksonville, Florida, market predict residential housing sales in the state’s most populated city will continue to grow, The Daily Record reported.
Fred Schmidt, chief operating officer of Coldwell Banker Commercial Affiliates, said millennials have potential to change the real estate market. With a sizeable demographic comparable to the baby boomers, millennials reach 76 million in number, representing a possible surge in the market once they get their finances in order.
“Where you live work and play – this generation will dictate that,” Schmidt said, in reference to millennials. “So, paying attention to this group is extremely important in terms of your planning for real estate.”
However, while they save up to buy their own homes, millennials are more likely to transition from living with their parents or straight out of college housing into rental properties, which include both single-family homes and apartments.
Since millennials often struggle to find high-paying and stable jobs, they may not have the savings or credit score necessary to qualify for a home loan. They are also more mobile than previous generations, and may not want to be tied down to a mortgage even when they can afford one. With this in mind, millennials with families have a greater chance of gravitating toward rental homes, which allow them to get a feel for the surrounding neighborhood and decide whether they want to take root there or elsewhere.
In 2013, Jacksonville experienced a significant shift in the population. An analysis of Census American Community Survey data found a 5.3 percent increase in the number of residents aged 20 to 29 in the city, News Geography reported.
Although Florida has always been known for its popularity among seniors, millennials are also beginning to see the appeal of Jacksonville and other Sunshine State cities. In addition to the sunny weather, millennials are attracted to Jacksonville’s lower cost of living compared to other cities in Florida. The city is also great for job seekers as it has a small percentage of unemployment that is lower than the national average.
With more millennials moving to this growing Florida city, investors in Jacksonville investment properties could look to the future and purchase rental homes to meet demand.