Millennials are projected to be the largest homebuying demographic this year. But it has taken a while for the generation to jump into homebuying—and for good reason. They spent most of their formative years watching the housing industry come undone during the Great Recession. Many do not trust lenders, nor do they fully trust that the home building industry will remain stable enough to be a safe place to invest. But the industry is not where it was when the housing bubble burst, and both lenders and builders are eager to avoid another 2008. So now that the industry is further down the road to full recovery, how can builders reach Millennials and regain their trust? One social worker shares how incorporating her practice’s approach to trauma can help address homebuyers' fears.
One of the most defining characteristics of the Millennial generation’s experience with the financial and housing ecosystems is that of fear.
As a result, they have developed a pervasive mistrust of banks, lenders, and the housing market overall. In one study by Even Financial, 92% of millennials stated that banks could not be trusted, and over half said they didn’t have anyone to turn to for financial advice.
In a recent home buying event in Los Angeles, attendees consistently shared their fears and insecurities about the topic.
“It’s scary,” said Reina, a 31-year-old homebuyer. “I think in the past there hasn’t been a lot of transparency about the process, and there’s just so many steps that are really intimidating.”
There’s a generational gap in how we think about homeownership and the American Dream.