Home ownership among millennials will play a key role in the recovery of the housing market in the post-pandemic period, according to property developers.
George Mburu, a real estate specialist, says this group is beginning to have more considerable influence than older generations when it comes to home purchases – a new market trend that is widespread in the developed markets like Canada and the US.
“We have witnessed an interesting trend during this pandemic period where more transactions are happening among people below the age of 40 years and we believe this is a unique shift that will be more popular even after the pandemic,” says the 33-year old Chief Executive Officer of Mizizi Africa Homes.
Over the years, home ownership has continued to elude the majority of millennials and singles owing to various factors such as high mortgages, tough economic conditions as well as personal preferences.
But that is fast changing now, according to Mburu who says that more millennials are buying a place of their own with a growing number equally saving towards such goals.
“It is common today to see a 30-year old living in their own homes, this was a rare thing a decade years ago, and this is just a reflection of how far we have come and fast the industry has been evolving,” adds Mburu, who attributes the new shift to availability of disposable income among this group, recent adjustments to regulations on mortgage loans as well as crucial lessons offered by the Coronavirus that has seen a host of millennials continue to work from home.
The term millennials is usually considered to apply to individuals who were born after 1980 – a generation that is also quickly becoming highly educated with a good number having gone past their undergraduates with the right mind-set and exposure on investment options.
Over the years, the real estate sector has turned out to be an attractive vehicle for this age bracket.
Kenya’s demography is slanted towards the millennial and out of the country’s current 51.39 million people, the youth form a solid 35 per cent with majority of those living in rentals.
“I think this period showed me just how important it is to have your own place and it doesn’t have to be close to my work station.
I have begun a savings’ plan for myself already and hopefully I will be able to have enough to jumpstart those plans with the help of a mortgage financier,” says Iverson Ongira, an aspiring homeowner in his early thirties.