After 2008 some people feared the real estate market both nationally and locally would never be the same. However, home prices and transactions are normalizing, and buyers are showing more interest in the market, pointing to recovery.
According to a study from RealtyTrac, Millennials are a big part of this recovery. RealtyTrac looked at census data in major cities across the nation to track trends in the population data alongside other relevant factors, such as home prices and rental rates. This analysis allowed them to see who was buying and where.
While baby boomers have traditionally been driving forces in the home buying market, the data shows that a shift toward Millennial buyers is currently underway. In fact, baby boomers are leaving major metropolitan areas in search of cheaper, downsized homes, making them a less significant factor in housing recovery. Millennials, on the other hand, have been flocking to larger markets, seeking more jobs and affordable living conditions. As Millennials seek better employment opportunities, they are revitalizing major real estate markets as first time home buyers and renters.
This trend has been seen in major markets across the country, including Los Angeles. With its concentration of business, there are ample job opportunities in Los Angeles, making it attractive for Millennials. As more Millennials come to Los Angeles for employment, they are buying homes to help them make the transition. In this way, Millennials are a critical factor in ongoing recovery for the real estate market in Los Angeles and other cities throughout the country.