The Pew Research Center defines the millennial generation as those born between 1981 and 1996, meaning that the oldest millennials will be turning 40 this year; the youngest, 25. A recent report published by the National Association of Realtors (NAR) indicates that millennials, also commonly referred to as ‘Generation Y’, comprise 28% of all home buyers—or over a quarter of the market. For real estate investors seeking to optimize their return on investment (ROI), it is therefore essential to understand the demands and needs of millennials as well as their geographic preferences. As the largest living generation currently in existence, those involved in the real estate industry simply can’t afford to ignore this important customer base. Both New York and New Jersey are popular destinations for millennials due to their wealth of professional, recreational, and social opportunities. The following is a breakdown of some of the most sought-after cities in both states by aspiring Generation Y homebuyers and renters to assist investors in choosing the next location for an investment property.
NEW YORK
The secret is out: There is much, much more to New York State than the Big Apple alone. Whether it’s the allure of the pristine rolling skyline of the Hudson Vally area or the family-friendly communities scattered across the rolling hillsides of Western New York, younger buyers are quickly learning that other areas of the state offer benefits that big city living simply can’t provide, namely: affordable living, high-paying employment options with a short commute and a safe, family-friendly environment. The following cities are increasingly drawing millennials seeking a place that offers affordability without making any sacrifices in terms of quality of life.
- Buffalo: The aptly named “Queen City” is a huge draw for Generation Y for a number of reasons. Per a report by the New York Times, between 2000 and 2012, the number of college-educated Buffalo residents aged 25-34 increased to over 34% of the city’s collective population total—outstripping national metropolitan powerhouses like New York City and Los Angeles. The city is easy to get around with a low average daily commute that is amongst the best in the country and has a number of economic initiatives like the Buffalo Building Re-Use Project that are boosting the local economy and providing job opportunities. Investors should be confident that a real estate investment in Buffalo has great chances of providing sustainable passive income and price appreciation well into the future.
- Syracuse: Similar to Buffalo, Syracuse has undergone somewhat of a transformation due to extensive renovations and a revitalized downtown. The accessible public transportation, low commute times and affordable housing options as well as an overall safe environment ideal for raising a family adds to the appeal of Syracuse. Real estate investors should get their foot in the door now before the market explodes and property prices skyrocket—it could be a once-in-a-lifetime opportunity to capitalize on this unique opportunity.
- Schenectady: The vibrant downtown sector of Schenectady has evolved into a lively metropolis with big-city vibes. With diverse demographics and restaurants, shops and recreational outlets to cater to virtually every taste, Schenectady is attracting a growing base of millennials.
NEW JERSEY
New Jersey has a lot to offer—namely affordable living and easy access to the nearby major urban centers of New York City and Philadelphia. Here is a closer look at some of the top spots millennials are flocking to throughout New Jersey.
- Hoboken: Young workers love the Hoboken area due to its relative affordability compared to downtown New York City and the fact that Hoboken boasts some of the lowest crime rates in the entire state. What’s more, the city has a wide array of nightlife venues, pristine public park networks and fitness centers. It’s a popular destination for so-called hipsters as well, with several boutique shops and artisanal cafes. Real estate investors should also be ‘hip’ to Hoboken due to a steadily rising population of well-paid potential homebuyers and tenants.
- North Bergen: This in-demand spot for millennial home-seekers is alluring due to its ideal location—just a half-hour from Midtown Manhattan—and its stunning views of the New York City skyline. There have been major development projects of late in North Bergen to include several major retailers and apartment complexes.
- Princeton: The host city of the prestigious Princeton University, this city is the state epicenter of arts, cultural and intellectual energy and academia. Princeton is an enviable destination for millennials looking for an equidistant commute to both Philadelphia and New York City—both of which are only less than hour away via train or bus. Real estate investors looking to tap into a steady stream of college student tenants or well-off tenants with a stable income should take note of Princeton.
If you are looking to expand into these markets, let Rehab Warehouse Inc. help! We are a local lender to the New York and New Jersey markets and would love to partner with you on your next private money loan.