Tandy On Real Estate

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David Tandy

Property Taxes Influence Homebuyer Migration

Last week Rob Chrisman talked about what makes homebuyers move in his daily newsletter. According to MarketWatch jobs are the determining factor for someone to relocate, second to state and local taxes.

ATTOM Data Solutions, national property database provider, released its 2017 property tax analysis for more than 86 million U.S. single family homes which shows that property taxes levied on single family homes in 2017 totaled $293.4 billion, up 6 percent from $277.7 billion in 2016 and an average of $3,399 per home — an effective tax rate of 1.17 percent.

For Daren Blomquist, Attom’s senior vice president, the story of national property taxes is the story of migration around the country. Blomquist told MarketWatch that taxes are “the icing on the cake” in areas that are seeing strong population inflows anyway.

“Among the counties that saw the biggest percentage of in-migration in 2017, according to Census data, all are in Texas, Florida, Georgia, or the Carolinas. Texas doesn’t have particularly low property taxes, but it has no personal income tax, making the overall tax burden much more manageable,” said Andrea Riquier of MarketWatch.

Texas is a pro-business state that continues to attract business and population.

Business Facilities Magazine ranked Texas as the top state in the nation for the Best Business Climate in the magazine’s 13th Annual Rankings Report. Out of all 50 states, Texas achieved the best overall performance in the 2017 State Rankings Report.

According to Texas Governor Abbott, “economic liberty is why Texas leads in job creation and in corporate expansion and relocations.  Restrained government, lower taxes, smarter regulations, right-to-work laws and litigation reform—these are the pro-growth economic policies that help free enterprise flourish and that attract business to Texas from states that overtax and overregulate.”

Austin continues to attract businesses, and is a hub for corporate and regional headquarters, including AMD, Apple, Bazaarvoice, Cirrus Logic, Dell, Dimensional Fund Advisors, eBay, Facebook, Freescale, General Motors, Hanger, Hewlett-Packard, HomeAway, Home Depot, IBM, LegalZoom, National Instruments, Oracle, Whole Foods, and Visa. Check out the  Austin Chamber of Commerce Austin’s major employers map.

Best and worst business climates.

24/7 Wall Street ranked best and worst business climates looking at nearly 50 measures of doing business, including economic conditions, business costs, state infrastructure, the availability and skill level of the workforce, quality of life, regulations, technology and innovation, and cost of living.

Massachusetts ranked No. 1 with a well-educated population that is a boon for state businesses. Such a population presents a more flexible and skilled talent pool for employers. Also, people with college educations tend to have higher incomes, which means they have more disposable income to spend. A nation-leading 42.7% of Massachusetts adults have a bachelor’s degree, compared to 31.3% of adults nationwide. The typical state household earns $75,297 a year, the fourth highest median income of any state and over $17,000 greater than the national median.

And, Louisiana ranked last. Working-age Louisianans are less likely than working-age Americans to have the qualifications for higher-skilled, higher-paying jobs. Just 23.4% of adults in the state have a bachelor’s degree, nearly the lowest percentage of all states. Unlike most states, Louisiana’s working-age population is also declining. In the Census’ American Survey of Entrepreneurs, 46% of state businesses reported unpredictable conditions having a negative impact on their business, and 48% reported slow business or lost sales, each among the highest shares in the country.

Texas ranked among the top states at No. 13.

  • 1-yr. real GDP change: -0.3% (7th largest decrease)
  • salary: $53,838 (12th highest)
  • Adults w/ bachelor’s degree: 28.9% (tied — 22nd lowest)
  • Patents issued/100,000 people: 35.7 (18th most)
  • Working-age population change, 2020-2030: -14.9% (4th largest growth)

According to USAToday, “like North Dakota and a few other oil-producing states, Texas’ economy has taken a beating from the more-than-three-years-long stretch of depressed crude oil prices. However, the state’s economy is more diverse than that of North Dakota, and GDP has contracted by just 0.3% in the most recently reported year. Credit agencies Moody’s and Standard & Poor’s clearly recognize the state’s stability and rate its debt a perfect AAA and Aaa, respectively, with a stable outlook. The state’s businesses not only benefit from a stable economy, but also from a growing labor force. Texas’ working age population is projected to grow by 14.9% between 2020 and 2030, the fourth most of any state.”

Austin MSA stands out with 42.8% having a bachelor’s degree or higher, as compared to 28.9% in Texas, and 31.3% in the United States. And, WalletHub ranked Austin-Round Rock No. 9 in the Most & Least Educated Cities of America.

SOURCE: U.S. Bureau of the Census, American Community Survey

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SOURCE:
http://www.robchrisman.com/daily-mortgage-news-commentary/page/2/
https://www.marketwatch.com/story/americas-new-great-migration-in-search-of-lower-property-taxes-2018-04-05
https://www.attomdata.com/news/market-trends/home-sales-prices/attom-2017-property-tax-data-analysis/
https://gov.texas.gov/news/post/texas-ranked-top-state-for-business-climate-by-business-facilities-magazine
https://businessfacilities.com/2017/07/business-facilities-13th-annual-rankings-report/
https://www.austinchamber.com/upload/files/ed/MajorEmployersMap.pdf
https://www.usatoday.com/story/money/business/2018/03/05/economic-climate-best-and-worst-states-business/376783002/
https://www.austinchamber.com/economic-development/austin-profile/population#Educational%20Attainment
https://wallethub.com/edu/most-and-least-educated-cities/6656/

Austin Ranks No. 1 on Nation’s Best Places to Live

Two years running Austin is number one on the nation’s Best Places to Live according to U.S. News and World Report. For those of us who are Austinites and who are working in real estate, we know this to be true.

Austin took the lead again in the magazine’s 2018 edition of its Best Places to Live in the U.S. list, which ranks 125 major metro areas in four categories including desirability, value, job market, quality of life and net migration.

Check out the Top 10 cities.

2018 Top 10 “Best Places to Live”

  1. Austin
  2. Colorado Springs, Colorado
  3. Denver
  4. Des Moines, Iowa
  5. Fayetteville, Arkansas
  6. Portland, Oregon
  7. Huntsville, Alabama
  8. Washington, D.C.
  9. Minneapolis-St. Paul, Minnesota
  10. Seattle

“When deciding on a place to settle down, it’s important to understand that where a person lives can impact their well-being,” said Kim Castro, executive editor at U.S. News. “U.S. News created the Best Places to Live to highlight areas across the country that have the characteristics residents are looking for, including steady job growth and affordability. The top-ranked places are areas where citizens can feel the most fulfilled socially, physically and financially.”

And, Austin is not stopping it’s growth, according to the Austin Business Journal Austin’s population keeps growing. In fact, there were 151 additions to the population a day in 2017, down only slightly from 159 in 2016.

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SOURCE:
https://www.cnbc.com/2018/04/10/us-news-world-report-the-10-best-places-to-live-in-the-us-in-2018.html
https://realestate.usnews.com/places/texas/austin
https://www.bizjournals.com/austin/news/2018/04/10/austin-no-1-again-on-revered-best-places-to-live.html?ana=e_ae_set1&s=article_du&ed=2018-04-10&u=CuOUKGCJY978Qy2wnhw9SA0f338830&t=1523397950&j=80955401
https://www.bizjournals.com/austin/news/2018/03/22/austins-population-keeps-popping-heres-how-many.html

US Becoming the Number One Crude Oil Producer in the Near Future

Soaring Texas and US production will result in the US becoming the number one crude oil producer in the near future, possibly in 2018 with Texas providing about 40% of the total US production.

Last year, the U.S. pumped out more than 10 million barrels a day for the first time since the early 1970s, boosted by a rapid ramp-up in shale-oil output. US production has continued to rise this year: It reached 10.2 million barrels a day in January and is forecast to top 11 million by the end of 2018, according to the U.S. Energy Information Administration.

US Monthly Crude Production
Due to new technologies for drilling in shale formations, the increase in Texas oil production since 2010 has been dramatic and continues to grow.  Texas Oil and gas production increased for the sixth quarter in a row.

Texas Crude Oil ProductionAccording to the Federal Reserve Bank of Dallas average prices to profitably drill a new well for the Permian Basin rose to $50 per barrel this year from $48 last year.

With the average price of crude oil ranging between $60 and $65, Texas oil producers have strong incentives to drill and produce more.

Dallas Fed Energy Survey
The bottom line: Texas remains a strong energy driven state. While Texas did not suffer as strong of a downturn with the drop in the price of oil after 2014 as it would have in the past with a similar drop in price, the economy has greatly benefited from the growth in oil production. With a projected oil price in the $60+ range for the rest of the year, the Texas energy sector will continue to boost the overall Texas economy. The risks of a drop in price from supply exceeding demand are offset by continued efforts from OPEC/Russia to limit production levels past 2018 and increasing concerns over the collapse of production from Venezuela.

Sources:
http://www.worldoil.com/news/2018/3/8/oil-and-gas-economy-up-25-according-to-texas-petro-index
https://uk.reuters.com/article/uk-energy-iea/u-s-to-overtake-russia-as-top-oil-producer-by-2019-at-latest-iea-idUKKCN1GB0C4?rpc=401&
https://www.marketwatch.com/story/us-set-to-become-worlds-largest-oil-producer-as-early-as-2018-iea-says-2018-02-27
https://www.dallasfed.org/research/surveys/des/2018/1801.aspx
https://www.dallasfed.org/-/media/Documents/research/econdata/energycharts.pdf?la=en
http://money.cnn.com/2018/02/12/news/economy/venezuela-oil-production/index.html
https://www.investors.com/news/opec-wants-long-term-russia-oil-production-pact/

Corporations Relocating to Texas and Austin

Here are some great articles highlighting the continued trend of corporations relocating to Texas and the Austin area:

Today, Ray Perryman reports that Texas again wins of Site Selection Magazine’s “Governor’s Cup” competition: Another Win for Texas – This award goes to the state with the most major corporate location and expansion projects in a year. The 2017 win is the sixth in a row for Texas. Lone Star State also won in 2004, 2005, and 2010 (and was a close second in several of the years between).  Last year, Texas had 594 projects with a capital investment of at least $1 million, 20 or more new jobs, or 20,000 square feet of new construction. Texas has resources corporations need: a large and growing population, oil and gas, a coastline favorable to shipping, abundant land, a relatively moderate climate, and a central location, among others.

Greater Austin Chamber of Commerce reports on Relocations and Expansions: 2016-2017 RELOCATIONS & EXPANSIONS LOG – note the large number of Headquarters that are expanding.

Other tech companies moving to Austin: Texas takeover: Why 5 tech companies relocated their headquarters to Austin – Great article which highlights the many reasons why companies want to relocate to Austin.

San Francisco article: Tech pipeline to Texas: Tax money, people flow out of Bay Area – which highlights the struggles of keeping companies in the bay area vs. moving to Austin for the labor they need to grow and expand.  This is a 2016 article but highlights the ongoing trend of companies moving from other states, particularly California, to Austin.

Links to articles:

Impact of the new 2018 tax law on real estate owners and on 1031 tax deferred exchanges

History is being made. According to Asset Preservation Inc., “Congress has approved sweeping tax cuts and tax reform that have not been tackled by the federal government in over 30 years (since the Tax Reform Act of 1986.). The new tax law, formally referred to as “The Tax Cuts and Jobs Act,” will go into effect in less than two weeks on January 1, 2018. This article has the most up-to-date information along with a summary of how the new tax law provisions will affect homeowners and real estate investors who own all types of investment property.”

Click here to learn what real estate owners need to know about the new tax cuts and reforms.

 

How industry professionals can avoid and respond to wire fraud

Wire fraud has become rampant in our industry. The FBI has estimated that there are over 4,000 hack attempts per day nationwide. According to the Financial Crimes Enforcement Network (FinCEN) there have been 22,000 cases of reported wire fraud involving losses of over $3.1 billion dollars since 2013.

The real estate industry has been targeted by fraudsters because our business moves at a quick pace with a lot of funds on a regular basis. The criminals continue to strengthen their efforts to abscond with buyer, seller and REALTOR money. Below are some tips for how we can help educate our buyers and sellers about how important it is to be cautious in their transactions.

1. Consumer education.

The biggest key to prevention is education of your customers. As a REALTOR you should be laser focused on educating the buyers and sellers about the growing risks of wire fraud. At every opportunity take the time to explain that wire fraud has become prevalent and explain how we, the title company, will deliver wiring instructions. Buyers and Sellers should understand that if they receive a phone call, fax or email regarding wiring of funds, they must call a previously validated phone number to verify the funding information. Always caution the client about contacting the title company from an email signature. Criminals have become sophisticated at sending fraudulent communications pretending to be the REALTOR, the title company and the lender. criminals send emails with identical looking signature blocks of one of the parties to the transaction but replace with phone numbers the criminal will answer if someone calls. A good tip is to ask your clients to program our phone number into their cell phones when they go under contract. This way they are only calling us on a trusted phone number and not from any other resource.

Buyers should be forewarned by their REALTOR that no one in the transaction should send them wiring instructions other than the title company. Even when the title company sends wiring instructions it should be only upon request from the customer and the customer should never initiate a wire without personally calling the title company from a verified phone number to verify the wiring instruction data.

A REALTOR should never take on the responsibility of sending wiring instructions to their clients. After having the conversation with your client to educate them on the red flags of wire fraud it is highly advisable that you have a disclosure signed by them confirming your conversation that includes a reminder to never send funds without contacting the title company first at a trusted number to confirm the instructions.

On the seller side of the transaction, you should counsel the clients to bring a physical copy of their wiring instructions to closing. The sellers should not email their account information out. Instead they should bring the instructions to closing. All sellers should be counselled to not respond to email inquiries requesting their account number or wiring information.

Also, make sure that we have your buyer or seller’s phone number. When we receipt the contract we will call your buyer and seller to talk to them about the transaction. We will reiterate the warnings that you are giving them and we will help remind them how important it is to follow our instructions.

2. Contacts Log.

Before you go under contract create a log of all approved parties’ phone numbers to give to your buyer or seller. Providing the clients with a verified phone number to use at the beginning of the transaction is a must. Programming the title company number into their phone should help minimize the possibility of a fraudster sending them a different phone number to use via email.

3. Confirmation of wire instructions for REALTORS.

Many REALTORS today have a portion of the commission wired. If you fall into that group make sure you are available by phone to verify the wiring instructions. Criminals are hacking emails and sending in fake wiring instructions for commissions too!

4. Two-Factor Authentication.

You should implement Two-Factor Authentication. All parties to the transaction, especially real estate agents, should be encouraged to enable Two-Factor Authentication on the email service they utilize, especially real estate agents using public domain email systems such as Yahoo and Gmail. This site lists systems that implement Two-Factor Authentication: https://twofactorauth.org/. After you have turned on your Two-Factor Authentication make sure to change your password one time to clear out any prior access.

5. Secure email.

All email involving nonpublic, private and confidential client information should be sent utilizing secure email systems. Here is an article from the National Association of REALTORS (NAR) regarding NAR Best Practices https://www.nar.realtor/articles/internet-security-best-practices.

6. Cyber protections.

REALTORS should implement industry standard IT security and cyber protections of their email and computer systems including but not limited to: 1) utilizing strong antivirus software, 2) installing security patches for all operating systems and software applications, 3) logging out or locking their computer when leaving their computer unattended, 4) avoid clicking on suspicious links on websites or within emails and 5) avoid using free WIFI or free charging stations. Free WIFI pretending to be legitimate businesses is often operated by criminals and allows them to access everything being transmitted over WIFI.

When fraud happens. If you suspect a fraud is underway or has happened, act immediately! Contact as many people in your management team as well as at the time company. The bank and FBI need to be contacted immediately among other steps that must be taken. The Cybersecurity unit of the Department of Justice has published the following guidelines for reporting cyber incidents: https://www.justice.gov/sites/default/files/opa/speeches/attachments/2015/04/29/criminal_division_guidance_on_best_practices_for_victim_response_and_reporting_cyber_incidents2.pdf

Sources:

ALTA Wire Fraud Resources:
http://www.tlta.com/TLTA/News_Articles/ALTA_Releases_Several_Resources_to_Help_Protect_Title_Companies_and_Customers_From_Wire_Fraud.aspx
ALTA notice about phishing emails: https://www.alta.org/news/news.cfm?20170801-Phishing-for-Wire-Transfers
ALTA Wire Fraud Red Flags: https://www.alta.org/news/news.cfm?20170725-Red-Flags-to-Protect-Your-Company-Against-Wire-Fraud
ALTA Sample Wire Fraud Warnings: https://www.alta.org/news/news.cfm?20170725-Sample-Wire-Fraud-Warnings-You-Can-Use
FBI’s Public Service Announcement regarding Business Email Compromise: https://www.ic3.gov/media/2017/170504.aspx

Our executive team at Texas National Title is committed to helping our clients talk to customers about preventing wire fraud. David Tandy (CEO) and Latra Szal (COO/Counsel) have been teaching many classes on the topic to local REALTOR groups. If you would like to schedule a class or conference for your office to discuss further please let me know and we will get something scheduled.

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Cybersecurity: Homograph Attacks

The domain you are visiting online, may not actually be the website you were thinking it was. According to The Register homograph attacks, although not new, are still an issue in modern-day web-browsing. This may not be on your radar, but it is definitely something to be aware of as we continue to live in our online world. Here is what you need to know about homograph attacks, and how to protect yourself.

What is a homograph attack?

According to Malwarebytes Labs, “A homograph attack is a method of deception wherein a threat actor leverages on the similarities of character scripts to create and register phony domains of existing ones to fool users and lure them into visiting. This attack has some known aliases: homoglyph attack, script spoofing, and homograph domain name spoofing.” An example of this is using the Latin alphabet to spoof the letters in a common English domain, e.g. bl00mberg.com or g00gle.com.

How does this affect me?

Cybercriminals are using non-English characters to mimic common English domains in order to trick users. Homograph attacks use a fake, yet believable website to lure you in. These sites are created for phishing, fraudulent purposes, or to introduce malware onto your system. The issue is that every browser builder, certificate authority and registrar have global customers – making their systems and you a potential target.

How can I protect myself?

Here are a few tips from Malwarebytes Labs to help protect yourself.

  1. Regularly update your browser (They may be your first line of defense against homograph attacks)
  2. Confirming that the legitimate site you’re on has an Extended Validation Certificate (EVC).
  3. Avoid clicking links from emails, chat messages, and other publicly available content, most especially social media sites, without ensuring that the visible link is indeed the true destination.

It boils down to being aware of what you click on, before you click on it. Always hover over a link before you proceed to click on the link.

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SOURCE:
https://www.theregister.co.uk/2017/04/18/homograph_attack_again/
https://blog.malwarebytes.com/101/2017/10/out-of-character-homograph-attacks-explained/
https://en.wikipedia.org/wiki/Extended_Validation_Certificate

 

Is public WIFI too good to be true?

We love the idea of public WIFI. It is everywhere. It is free. It is easy to connect to. It is convenient. But, is it too good to be true? According to Harvard Business Journal, “over half of the adults in the U.S. have their personal information exposed to hackers each year.” And, 89% of all cyber attacks involve financial or espionage motives according to Verizon’s annual Data Breach Investigation Report.

Hackers love free WIFI
Those same reasons why we love public WIFI are also why hackers love it too. With public WIFI, hackers can get unfettered access to unsecure networks full of personal information they can then use to hack into your life and business. They position themselves between you and your connection point. They then see everything you are sending to the hotspot and pass it on. In this position, they will see anything you transmit over the WIFI network, your email, username and passwords, credit card information, business network credentials… Once they have access to this information they can use it at their leisure and access your systems. Hackers also use unsecure networks to distribute malware which can infiltrate your computer.

One mistake people make using public WIFI

According to USA Today, “If I’ve said it once, I’ve said it a thousand times: Avoid doing anything you would not want anyone in the world to know on public WIFI. You may think you’re safe in that busy café or big-name hotel, but public WIFI is a major liability.” You never know when someone has spoofed a reputable brand’s WIFI network. USA Today’s Stephen Petrow was hacked on a plane, click here for his story. This could happen to anyone.

REALTORS® Beware

Jessica Edgerton, National Association of REALTORS Associate Counsel, warns REALTORS®, “Do not do business over free WIFI” in the NAR training “Wire fraud scams: how to protect your buyer clients”. There is just too much at risk in a real estate transaction to take a chance on an unsecure network.

Below are some steps to help safeguard yourself.

How to safeguard yourself and your business when using public WIFI
The vast majority of hackers are simply going after easy targets. Taking the following precautions should help to keep your information safe.

  1. Be aware

Now that you know that public WIFI is not secure – be cautious and remember that any device can be at risk. This includes your laptop, smartphone or tablet. Be suspicious of wireless networks, and refrain from connecting to unknown or unrecognized wireless access points.

  1. Use a VPN

Make sure to use your Virtual Private Network (VPN) that most businesses use for corporate email and Internet access through an unsecured connection, like public WIFI. This is your first line of defense when on public networks. If hackers do manage to get between you and your connection, the data will be heavily encrypted through the VPN and you will not be an easy target.

  1. Use SSL connections

When you are web browsing make sure you enable to “Always use HTTPS” option on websites you use frequently or that require you to enter credentials. Hackers are smart and if they catch a username and password they will try all of the variations knowing that it will more than likely lead to a password to your online banking, corporate network, or other accounts. Remember, you never want to enter your usernames and passwords in an unencrypted manner. This opens the door for hackers.

  1. Turn off sharing

When using the Internet on public WIFI, turn off your sharing in System Preferences or in your Control Panel. It is unlikely that you will want to share, so best to be safe. You can also let Windows do this for you by choosing the “Public” option when you first connect to the new network.

  1. Avoid using specific types of websites

In the event that you do use public WIFI, avoid going to sites where a cybercriminal could capture your information, i.e. online banking, social media sites, online shopping… If you have to access one of these sites, then use your mobile phone network versus the public WIFI to help protect yourself.

  1. Turn off WIFI when you are not using it
    Even if you are note actively connected to a network, the your WIFI hardware is still transmitting data between any network within range. To be safe, when you are not on the Internet, turn your WIFI off. Work offline until you need to connect. Another benefit to this is you can help to save your battery life too.
  2. Protect yourself

Keep an Internet security solution running on your laptop to constantly scan for malware.

Secure your home wireless network

Having a home wireless network is awesome. You can work from anywhere in your home. It is easy, and becoming a standard in new smart homes. Make sure that you protect yourself at home too.

  1. Don’t use the default password.

Make sure to change from the default password and use a complex password. Click here for tips for creating strong passwords.

  1. Turn off SSID (Service Set Identifier) broadcasting.

This will keep your wireless device/network from announcing its presence to your neighbors and the world.

  1. Change your device’s SSID name.

Change the default SSID name of your device. It is easy for hackers to guess your manufacturer’s default SSID name of your device. Make is harder by changing the default SSID name. And, remember to pick a name that is not easily identified.

  1. Use encryption.

In your connection settings, enable encryption. WPA encryption was the best, but even WPA2 was recently cracked. For the time being there is no safe public WIFI. To protect yourself, you must use a VPN service if you want to hide unencrypted traffic.

  1. Protect yourself.

Make sure you have a great anti-malware product on all of your home computers and devices. When you set this up, remember to set it up to auto-renew so you do not go unprotected. Also, find a great IT resource to help you routinely review your computer and devices to ensure you are running optimally and that you do not have anything running in the background on your computer to compromise you or your network.

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SOURCE:
https://hbr.org/2017/05/why-you-really-need-to-stop-using-public-wi-fi
http://www.verizonenterprise.com/verizon-insights-lab/dbir/2017/
https://www.usatoday.com/story/tech/columnist/2017/08/18/one-mistake-people-make-using-public-wi-fi/577791001/
https://www.usatoday.com/story/tech/news/2016/02/24/public-wifi-gogo-steven-petrow-hack-airplane-email-columnist-vpn/80873010/
http://rebac.net/sites/default/files/Wire%20Fraud%20Scams%201.pdf
https://www.howtogeek.com/204697/wi-fi-security-should-you-use-wpa2-aes-wpa2-tkip-or-both/
http://tandyonrealestate.com/cybersecurity-creating-strong-passwords/
https://www.gizmodo.com.au/2017/10/wi-fis-most-popular-security-method-might-be-broken/

 

 

The multi-faceted Millennial

In the Consumer Housing Trends Report 2016 the Zillow® Group covered the multi-faceted Millennial.

I found the report enlightening, debunking some of the myths about millennials, and uncovering that I may be a Millennial at heart.

Zillow stressed the importance of home and community for millennials. According to the report millennials under the age of 25 see their home “as a reflection of themselves rather than a financial investment”. This is unlike the older Baby Boomer generation who sees their home as a financial investment and avenue to build wealth for the future and for their family. In addition, more than 55 percent see themselves as involved in their community. They are active in their neighborhoods and the surrounding areas, not so much unlike my Baby Boomer friends.

Zillow confirmed that millennials are “delaying many life milestones that precede home ownership.” They are completing their education, marrying and starting a family later in life, and as a result renting

Further into their adulthood. Here are the stats Zillow revealed:

  • Two-thirds of millennial buyers concurrently consider renting while shopping for a new home.
  • One in three Millennials seriously consider renting.
  • When Millennials buy they “leapfrog the traditional “starter home” and jump into the higher end market by choosing larger properties with higher prices, similar to homes bought by older buyers.”
  • They pay a median price of $217,000 – more than Baby Boomers and 11 percent less than Generation X.
  • The Millennial median home size is 1,800 square feet – similar in size to what older generations buy.

The report also debunked the myth that Millennials are only urban dwellers. According to the report:

  • One quarter of Millennial homeowners live in an urban area.
  • Nearly half of all Millennials live in suburban communities.
  • 8 in 10 adults under 25 living outside an urban core.

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SOURCE:
Zillow® Group Consumer Housing Trends Report 2016

 

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