A new trend among young adults is prompting optimism among us REALTORS®. The economic collapse left many young people moving back in with their parents as they were unable to get a job, afford an apartment, or buy their first home.
However, things are starting to look up for millennials. The Brookings Institute, a non-profit public policy organization, recently reported that more millennials, as this demographic is sometimes called, are leaving their parent’s home and their home state, for jobs. So the need for housing will increase among this age group. Because young adults have been saving money while living with their parents, they also have cash for down payments to buy a home.
William Frey, a senior fellow at the Brookings Institute, said in a video that he is seeing the largest gain in migration of this age group in 15 years. Fey said that this is a sign of things to come from the broader population, offering more optimism for real estate sales.
“I see this as a leading indicator of migration for the broader population,” Frey said, adding that young adults are leading the migration trend because they don’t have anything holding them back, like underwater mortgages or a home that has been foreclosed upon. “So when they start moving, that means that something is going on.”
Frey said that the places where young adults are migrating to are typically knowledge-based and technology-based. Given that the Pioneer Valley is also recognized as being a part of the Knowledge Corridor, which is the home of numerous colleges and universities, 1.1 million workers, 41,000 businesses, and six Fortune 500 companies, it stands to reason that towns in the valley will benefit from this new millennial migration.
If you are planning on buying or selling a home in the Pioneer Valley, make your first call to Michael Seward at 413-531-7129.