Let’s talk about Millennials and Real Estate

My sons are Millennials. My Walnut Creek Lifestyle freelance writer is a Millennial. More and more of my clients and colleagues are Millennials, as that generation continues to age into home-buyers.

So, realtors like myself are starting to notice more trends with the market geared toward that age group. It’s a different real estate market for Millennials than it was for their parents – nowadays, they are graduating with huge student loan debts, having trouble finding lucrative work out of college, and then struggling to pay sky-high rents and mortgages once they do get jobs.

That said, Millennials are driving the real estate market right now, which has made the following observations more obvious.

From San Francisco realtor John Solaegui:

  • There is a low inventory of single-family homes in San Francisco
  • Millennial buyers don’t care about parking spaces (though this might be more prevalent in San Francisco – it’s contradicted by the graphic above!) with the rise of ridesharing apps – they’d prefer having decks or gardens for outdoor entertaining
  • Areas like Noe Valley, Glen Park, Bernal Heights and The Sunset in San Francisco are extremely popular with Millennial buyers right now

From the California Association of Realtors’ REALTOR Magazine:

  • Millennials are cashing in on equity at a historic rate, thanks to rising home prices
  • One-third of Millennials say they are considering applying for a HELOC (home equity line of credit) in the next 18 months – much more than Gen-X or Baby Boomers
  • HELOC’s are popular with Millennials because they can consolidate debt and afford home remodels with them

I think this is an interesting trend in our market. Home prices are high, but so are the debts and loans owed by Millennials, so we’re seeing more and more interest in new ways around that issue. And even more interestingly, Millennials are changing the way we market homes – who cares about parking when you don’t have a car, right?

Tips for surviving the next drought

Last winter, the rains were plentiful. This spring and summer, the rivers have been gushing, lakes have been full and waterfalls have been crashing.

It’s a scene we haven’t had in the Bay Area in quite some time. But since the drought ended, all the regular water usage has returned – flushing normally, watering our gardens more than once a month, leaving the water going occasionally and not worrying about it…

That said, we’re still in California and we’re still in an accelerated state of global warming (according to most climatologists, anyway). So, there will be another drought. Here are some Bay Area-specific tips from the Contra Costa Water District (CCWD) for surviving the next one:

Know your water provider’s Drought Program and its requirements

Every water provider should have a Drought Program. Contact them to make sure you know what their requirements are, ahead of the next drought. If you have CCWD, you can sign up for their newsletter to get updates.

Know how much water you are using

You can read your water meter to better understand how much water you’re using. However, that can be tricky. Here are some tips on CCWD’s website: www.ccwater.com.

Check for leaks

You can also utilize your meter to check for leaks. One of the most common leaks and wastes of water comes from the toilet. Check regularly!

Use efficient fixtures and appliances

You should always get EnergyStar appliances if possible, and you should have a toilet with 1.28gpf or less. Check if yours does at www.map-testing.com. Also, make sure your laundry loads are always full and don’t leave faucets running!

Convert lawns to gardens

Some water providers offer rebates for converting a lawn to a garden. For example, CCWD offers $1 per square foot of lawn converted ($1,000 maximum residential, $20,000 maximum Commercial/HOA). And California will give you a state rebate for front and back lawn conversions as well. Plus, it just looks prettier!

If you irrigate, do it efficiently

If you irrigate or have sprinklers, make sure the system is in good shape (no blocked or broken heads) so there’s no water waste. Try to water after the sun goes down or before it goes up to avoid evaporation. And turn the system off when rain is coming.

There are a million different simple ways to avoid water loss when the next drought occurs. Water is a still a precious commodity!