There probably never has been a generation that goes by as many names. They’ve been called the Millennials, Generation Y, Generation Next and Echo Boomers, just to name a few monikers.    

Whatever you call them, they are the largest demographic category in U.S. history. At an estimated 80 million strong, this generation is typically described as those having been born from about 1982 to 2000. Lane and John recently discussed the Millennials and their impact on the real estate market.

Rebchook: Lane, how important are the Millennials to the future of housing? 

Lane: This is the generation that is going to drive the real estate industry going forward. The Millennials are bigger than the Baby Boomers, but they have a very different view of real estate. 

Rebchook: How so? 

Lane: The ones who have already bought, they may already have been burned by the downturn. The ones who haven’t bought are skeptical. They’ve seen what has happened to their parents, friends or other family members. 

Rebchook: So what is their reaction to buying a first home? 

Lane: A lot of them are saying: “I’m in a rent mode.” 

Rebchook: Will they always be so skittish about buying a home? 

Lane: No. Eventually, I think the pendulum will swing back. It may be already.  They will want home ownership. But they will be buying for different reasons.  They will be buying for community, not so much for an investment. They won’t be taking out big HELOCs and using their home equity as an ATM card. They will want to put down roots, get to know their neighbors, and create families, with a lot of alternative or non-traditional families in the mix.  Homeownership will be the path to find a sense of community.

Rebchook: What does that mean for companies such as 8z Real Estate? 

Lane: It will be a fun ride. The challenge is to build an organization that will serve their needs and earn their trust. And that’s the fun part of real estate- helping people finding a great place to live and become part of a community where they will be staying for a while. These Millennials are going to seek out and find professionals who give them the “straight scoop.” They are not going to tolerate agents who don’t know their market cold, or who blow smoke and say everything’s rosy.  The Millenials will work with agents who tell it like it is- the good, the bad, and the ugly.

Rebchook: Thanks, Lane.

This was a continuation of the monthly conversation between John Rebchook, Editor of InsideRealEstateNews.com and former real estate Editor of the Rocky Mountain News, and Lane Hornung, President and CEO of 8z Real Estate.