Millennials: The Largest Group of Homebuyers
Millennials: The Largest Group of Homebuyers
December 10th, 2018
Last year, NBC News reported that the largest group of homebuyers was… wait for it… Millennials. The generation who grew up having internet made up 34 percent of the study. To compare, 30% of homebuyers were Baby Boomers. Interestingly, the Millennial generation outnumbers the Baby Boomer Generation from 75.4 million to 74.9 million. In fact, more than nine in ten Millennials (92%) own smartphones. When you compare this statistic to other generations, the numbers are eye-opening. According to a new analysis of Pew Research Center Data, 85% of Gen Xers (those who turn ages 38 to 53 this year), 67% of Baby Boomers (ages 54 to 72) and 30% of the Silent Generation (ages 73 to 90) own smartphones in comparison. These numbers mean that the homebuying generation of iPhone and iPad users has a TON of buying power.
The American Dream
Despite 46% of Millennials having student loan debt in 2018, 86% of millennials believe buying a home is a good financial investment. With Millennials focusing on homeownership as their “American Dream”, it’s important that lenders get it right when it comes to turning them into borrowers. So, where do you start? If Millennials are infamous for being on their phones ALL DAY, then this is where you start.
What They’re Looking For
Millennials expect mobile-responsive mortgage lending sites and applications with a responsive layout from their potential lender. They want their mortgage application to be as easy as buying a t-shirt from an online retailer. It’s not surprising. Millennials want to purchase products on the Amazon app and have it delivered a few hours later. They want to click on a movie and stream it on Netflix immediately. On average, millennials spend over two hours a day on their phones taking part in various activities. Technology improvements in smartphones has decreased the time it takes to access information. Why would millennials want their homebuying experience muddled up with paperwork, snail mail, and phone calls? They don’t want to make the home buying process longer than it has to be.
Minimizing Frustration
WebMax developed its innovative Point-of-Sale solution, START, to meet the demands of the new (and biggest) generation of borrowers. With START, WebMax provides a single location for the loan to exist for both the borrower and loan officer. There’s no shifting documents back and forth or waiting for verifications. START’s integrations to mission-critical third parties allows for the technology to do the work, streamlining workflows, reducing costs, and minimizing frustration.
With a proper digital point-of-sale solution in place, lenders can put themselves at the forefront when it comes to putting their mortgage application in the hands of a $600 billion market share of the homebuying industry.
