From staff reports

Across all income brackets, Millennials said they don’t think they are wealthy, a new survey of 1,000 people who fall in the 23-38 age bracket conducted by LendEDU revealed.

The company set out to find out how the generation that is eclipsing the Baby Boomer generation frames personal finance and the concept of wealthy.

“The 1,000 respondents were split evenly between three income brackets, allowing us to analyze where millennials from each economic class are similar and different in their views on finance,” LendEDU research analyst Mike Brown said.

The three income brackets were divided as $49,999 or lower; $50,000 to $99,999; $100,000 or higher.

LendEDU

Across every income bracket, respondents overwhelmingly said that they did not consider themselves to be wealthy. (more…)

home buyingWho is most likely to have home buying as a goal this year? Will remodeling and home improvement spending continue to grow?  We look at this and more in this week’s roundup of real estate news.

Four Percent List Home Buying a 2019 Goal

Four percent (about 10 million Americans) said buying a new home was their main financial goal for the year — and millennials were the most likely generation to claim that as a goal, a new Bankrate survey revealed.

Seven percent of millennials said they wanted to buy a home this year.

But that doesn’t mean financial goals aren’t being set. Bankrate’s survey revealed that about 89 percent of Americans have at least one goal for the year, with paying down debt being at the top of the list, with three in 10 saying that was their goal, followed by better budgeting (13 percent), saving more towards retirement (12 percent), saving more for emergencies (10 percent), getting a higher-paying job (6 percent), and investing more (5 percent). (more…)

The only hope many younger generations have to accumulate wealth is to stay cozy with grandma. Since 1995 (over a decade before the Recession), the median wealth of 25-34 year olds declined 39 percent, while 35-44 year olds declined 27 percent, and 45-54 year olds’ wealth declined 15 percent. There have been potent gains reported from 2013 to 2016, but obviously not nearly enough to offset long-term losses. The main culprits are excessive student loan debt and the decline in homeownership rates. You might say the growth of student loan debt has heavily contributed to lowered homeownership rates. To me, the chart below demonstrates why down payments are harder for younger buyers to save up for.

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When it comes to life on this side of the lake, there are few neighborhoods in East Dallas that still retain much of their character like Lochwood. Located on the north east side of White Rock Lake, hugging the borders to Old Lake Highlands and the L Streets, this neighborhood is delightfully hilly, with long stretches of greenbelts that curve around creeks, huge parks, and great neighbors. And it’s no wonder that, with the still bordering on affordable real estate in this neighborhood, Millennials have been searching for the right place to claim their first home.

We’ve seen our share of flips in Lochwood, one of the few remaining somewhat affordable neighborhoods inside the loop, and though we’ve easily fallen in love with them, there’s something to be said about knowing when to stop “updating.” Need an example? Check out this cute Lochwood ranch listed by Lauri Ann Hanson and Aimee Schreiner with Dwell Partners Realty at Dave Perry-Miller Real Estate.

“Located in one of East Dallas’ best ‘under the radar’ neighborhoods, Lochwood, this three-bedroom, one-and-a-half-bath, recently remodeled home is a perfect starter home,” Schreiner said. “It’s within walking distance to Lochwood Park and close proximity to White Rock Lake, so you can enjoy all that East Dallas has to offer right at your fingertips.” 

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NAR’s recent generational survey uncovered some really interesting trends. For starters, more and more Millennials are eschewing urban life and heading for the burbs, where they can afford to buy a house. Though Millennials contributed the largest share of home buyers in 2017 at 36 percent, a shortage of single-family construction has kept aspiring homebuyers from making the move. Additionally, larger numbers of households are living a multi-generational lifestyle, with more younger Baby Boomers buying homes to house their adult children and their own parents. Even Gen X households are buying homes with the intent of having their parents under the same roof. 

Now that many Millennials have started to pay down their staggering student debt, more of them are starting families. According to NAR’s report, the share of Millennials with at least one child continues to grow. But for many Millennial households in America, their desire to become homeowners combined with slow wage growth and high housing costs have pushed many out of larger cities and toward the suburbs. In fact, 52 percent of Millennial homebuyers bought larger and more affordable properties in suburban locations. 

In fact, Thrillist just published a piece that speaks to this trend: “State of the Suburbs: Dallas.” Forced to look in every nook and cranny for a home they can afford, Millennials are now turning their eyes toward the close-in suburbs that might not get as much attention as the master-planned communities in Collin County, such as Duncanville, DeSoto, Garland, and Grand Prairie.  

Of course, a lot of these trends speak to life in Dallas, which has a very upwardly mobile workforce and a lot of Millennials. However, are we seeing a run on suburban living? We asked some of our most-trusted Realtors to find out. 

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Plenty of data has shown that Millennials have been eschewing homeownership more than previous generations. That trend may now be reversing according to data from HomeLight, a company that utilizes complex data analysis to better understand real estate markets across the country.

“Millennial is a broad term, but when we look at our data, we are seeing more homebuyers in their thirties,” HomeLight spokesperson Matthew Proctor said. “That’s a lag compared with Baby Boomers and other generations who were buying closer to age 26 or 27.”

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Erin Seeds with her boyfriend, Eric, and their two dogs, Snoop and Bowie.

As more and more Millennials are priced out of what would be considered typical “starter home” ranges, long-term renting has become customary for an entire generation. But finding a great apartment with everything you want and need — and at a suitable price — is the modern day trial of Job. 

That’s part of the reason why Erin Seeds launched Apartment Fit. Though she was born and raised in Dallas, Seeds moved off after graduating high school. When she came back, all she wanted was to find a reasonably priced apartment for her and her two dogs. 

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Watauga’s 76148 was named the hottest ZIP code by Realtor.com. (Map: Google Maps)

Is it the year of the affordable suburb? As more Millennials search for single-family homes with affordable addresses, more and more suburbs with short commutes and great prices are catching on. So we’re thrilled to see some lesser-known neighborhoods get attention as Realtor.com has named Watauga’s 76148 as the nation’s hottest ZIP code for the second year straight.

“Millennials are the largest generation in U.S. history and they are flexing their muscle when it comes to the housing market,” said Danielle Hale, chief economist for Realtor.com. “Increasingly, the hottest housing markets are the ones that appeal to millennial preferences, and right now the standouts are relatively affordable suburbs with local ‘it’ factors such as hiking trails, great restaurants, and nightlife. With the largest cohort of millennials turning 30 in 2020, we can expect these types of areas to stay in demand in the years to come.”

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