Home sales across the United States have been largely driven by first-time Millennial homeowners. Though this trend has been good news for the larger economic landscape of the nation, home sales in the Bay Area don't reflect this pattern. While it's true that real estate here is more competitive than ever, Millennials drive local rental markets instead of home sales.
Scott Safadi of Cal Bay Property Management has seen the housing challenges faced by the average Bay Area Millennial. While homeownership is often associated with the American Dream, the high cost of living limits many young people from saving for a down payment. Instead, they turn to apartment rentals.
While homeownership remains a goal for many Millennials, there's an undeniable appeal in renting in the short-term. Given how competitive Silicon Valley startups tend to be, many employees are hesitant to put down roots locally. Even if they could afford a home in the area, many Millennials opt to save money and pay down student debt before saving for a down payment for a home.
Local property owners should take advantage of this trend by appealing to Millenial renters. Consider offering the kinds of amenities that will entice young people to sign multi-year leases in your community. Swimming pools and fitness centers are just the beginning. To take your property management to the next level, you'll want to hire a team of experts to maximize the efficiency of your office while overdelivering on the expectations of tenants.
- Scott Safadi, Cal Bay Property Management
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