There's a hot market developing with the potential to flip houses to the Millennial Generation (also known as Generation Y). There is no absolute consensus of the exact age range for this generation but generally it is children born between 1982 and 2002. This constitutes about 82 million people that have completed or will soon complete high school to either enter the work force or go on to college. This is your next wave of first time buyers and they are different from previous generations of first time buyers.
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The economic melt down saw many from this generation continue living in the lap of luxury of their parent's home instead of starting their own households. Census statistics back this up. Of people between the ages of 25 and 34, only 41% owned their own home in 2012. That is well below the 46% homeownership for this age range in 1982 and significantly below the high of 49% in 2002.
Flipping to Millennials
This built up potential market of first time buyers is likely to start entering the market as the recession fades into the background and these people not only become employed but also begin advancing in their careers. What makes these buyers different from previous generations is they grew up having much more than those that came before them and are going to expect more amenities in their first homes. This makes them ideal candidates for investors that remodel homes to flip them.
A solid investing strategy that targets this demographic should include investing in neighborhoods that are already high in concentration with owners in this age range. As always, buying lower cost homes compared to the surrounding homes works well. Then upgrading these houses to match or exceed the amenities these kids grew up with will almost certainly assure a top selling price.
Top 10 Cities for Flipping Houses
If you want to super charge your flipping strategy, you should look in cities having the highest percentage of Millennials.
Another profitable way of looking at this data is cities with a high percentage of Millennials but generating the most profit from flipping houses. These are gross profits that don't consider the cost of remodeling.
Always do your own research before investing in real estate.
About the author: Brian Kline has been investing in real estate for more than 30 years and writing about real estate investing for seven years. He also draws upon 25 plus years of business experience including 12 years as a manager at Boeing Aircraft Company. Brian currently lives at Lake Cushman, Washington. A vacation destination, a few short miles from a national forest in the Olympic Mountains with the Pacific Ocean a couple of miles in the opposite direction.
Another interesting way to look at this question is to find the cities that appeal most to Millennials. Generation Yers tend to like more urban locations where they can walk, bike, and take public transportation to their jobs and social outings. Cities like Boston, Washington DC, San Francisco, and Baltimore are high on that list.
Thanks for your insight. Much appreciated.