Since the recession we have seen a trend of 18 to 34 year olds staying at home and those who have left
the next are more likely to become renters than homeowners. But, times are changing and favorable
job prospects coupled with increasing wages are creating favorable conditions for home buyers. Many
millennials who have been considering stepping out into home ownership are now ready to move
Home prices have been steadily rising and are approaching pre recession values in many areas. In
addition, as we know the benefit of ultralow mortgage rates won’t last forever. For now the average 30
year fixed rate mortgage was still under 4% in December (according to Freddie Mac). This equals
millennials experiencing the fear of loss and causing many to jump into the home ownership pool.
Interestingly, many millennials are thinking outside of the traditional real estate purchase box and
attempting to cut their monthly mortgages with some rather unconventional purchases.
Purchasing multifamily units. Duplex, triplex, and fourplexes. Live in one unit and rent out the others!
This allows them to have a little help with their mortgage for now (in addition to having higher
purchasing power), have a stable place to live without fear of rent increases, and an option to rent out
their unit and perhaps become a cash flowing landlord when they are financially stable and ready to
move on to a new home.
VRBO properties. Those who don’t want a full time tenant or who want to purchase a single family
home there’s VRBO. Many Millennials are familiar with and frequently using VRBO themselves why not
make a purchase with a separate living area that you can rent out at will. This works really well for
buyers that are in popular vacation spots such as Camano Island or lake/river front properties. Homes
that are close to recreational areas such as Lake Stevens, Stanwood/Warm Beach area, or Arlington.
Also areas with frequent business travelers like Everett, Mukilteo, and Edmonds.
Co-ownership. Buyers may want to secure more purchase power by purchasing with a friend. This co-
ownership is typically short term but can be a less expensive and convenient option. There are several
ways to take title on a co-ownership home, check with me for some out of the ordinary solutions.
The current rising prices and interest rates make current home owners feel warm and fuzzy but not
someone who has not yet begun to climb the property ladder. If you or someone you know is
interesting in purchase one of these creative ways or is just simply ready to enjoy the benefits of
homeownership reach out to me I love discussing options and solutions that fit my clients