Real Estate News

What home-flipping could mean for millennials

Published: 27 Apr 2017

There may be some anxiety over the future of home purchases among younger buyers, but that doesn't mean it isn't happening. In fact, The Los Angeles Times recently wrote about the phenomenon of this demographic deciding to renovate depreciated houses and bring up their value. The article combines the terms "house flipping" and "hipster" to call them "flipsters," but is there a more serious reality here that could be a boon to home sales in the future?

Although it may not represent a majority, the home-flipping Millennial segment seems to fill a function for older would-be purchasers as well, since they can leave a new stylistic mark on the remaining properties. The source also referred to "excellent industry networks" that work with the young flippers to find them new business.

On a larger scale, this could play out alongside a problem some see in the coming housing markets. Though millennials may eventually gain the means to be more confident housing buyers, it's not just that generation that wants them to do so. According to City Lab, the future of the Baby Boomers may depend on how many of the younger home seekers are available to buy their old houses.

The source spoke to University of Arizona Professor Arthur Nelson, who described the way homes have reacted to the fallout from previous housing issues in general.

"Home values in much of the country are still less than those before the Great Recession of 2007 to 2009," he said. On the other hand, he also said that the lack of millennial buyers could keep Boomers from moving.

"It's not that Boomers are going to 'age in place,'" he added. "They're going to be stuck in place, and they're going to make the best of it."

Despite this, the presence of even some younger flippers could be a reason to avoid stereotypes and watch this demographic further.