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Millennials Are Going Suburban — Here’s What That Means For Santa Clarita

Despite many of them coming of age in the 2008 economic meltdown and reaching adulthood during a global pandemic, Millennials, particularly those in their late 20s and early 30s, are starting to buy homes. Currently, Millennials make up 43% of all home buyers in the United States, up from 37% the year prior.

This surge in demand is generally attributable to Millennials experiencing career growth which is enabling them to pay off their student loans and start families. “Despite stereotyped images of Millennials as a generation that craves urban life, the opposite may be true,” says Zain Jaffer, CEO of Zain Ventures, a PropTech-focused investment firm. “Many members of this generation are looking to live in suburban and even rural locations. For Santa Clarita Valley, this could mean an influx of younger people looking to purchase properties.”

What do Millennials want?

For many Millennials, the homes they are buying will be their first. “New to the world of mortgages, they’re aware that the home they initially buy may not be the one they keep,” says Jaffer. “Rather, they may just be looking to get a foot in the real estate door, getting a bit of mortgage experience under their belt and a chance to build some equity.” This segment of the population also tends to be more open to options such as condos and other multi-family buildings.

However, as Millennials age (though some are in their 40s), they may want more space, sometimes for their growing families. Others have perhaps more specific selling points for their forever homes: as always, location is key, so proximity to trails, parks, and highly rated schools, as well as access to public transportation, are ideal. It’s also highly probable that many buyers will want smart homes with modern tech, large kitchens and laundry rooms, spacious yards, and room for a home office.

As a suburb of Los Angeles, Santa Clarita and surrounding area is perfectly situated to deliver many of the amenities Millennials are searching for.

Can they find it in Santa Clarita?

Santa Clarita is located close enough to LA to make driving or taking the bus both viable options, though the latter can take upwards of an hour. “What makes Santa Clarita so appealing is that it has easy access to the events, restaurants, and culture of one of the United States’ largest and most vibrant cities while remaining relatively insulated from the noise and traffic,” says Jaffer. “For those who really want to get away from it all, though, it’s important to note that the nearby Six Flags Magic Mountain park is a draw for families with young children (or adults who love waterparks).”

Santa Clarita is also home to many biking and hiking trails, along with a quality school system, which received a 9/10 from the Public School Review. Housing prices in Santa Clarita are “somewhat competitive,” according to real estate brokerage Redfin, which also gave its “hotness”–that is, its percentage of homes that will be highly competitive in the market–a 67/100.

The median house price in the US is $428,700, which is notably lower than housing prices in Santa Clarita, which currently sit at around $720,000. However, this price is still notably lower than urban homes in LA, which ring in at $975,000. It’s also cheaper than the average home in California more generally, which costs around $800,000. Considering this, and the fact that Santa Clarita offers many of the fixtures Millennials are drawn to, the relatively small locale may see an influx of buyers from the generation.

Where to buy?

Santa Clarita has a few locations that would be ideal for Millennials. In general, Saugus is considered one of the more affluent parts of town, while the other neighborhoods offer homes of a wider variety of prices. As a result, Millennials may want to look elsewhere, depending on their budget. Newhall, for example, offers older and historic areas. The dwellings may not have the space of newly constructed homes, but the region is generally more affordable and many of the homes have a unique character.

Located between the Soledad and the Mint Canyons, Solemint offers easy access to various hikes and the Santa Clarita River, which may be appealing for outdoorsy Millennials. Canyon Country is home to larger homes, and Valencia has some interesting, Mediterranean-inspired properties as well as a rich social atmosphere. Both of these also have access to quality schools. In all, Millennials have a wealth of neighborhoods to choose from in the city, depending upon what interests them the most.

For Millennials living or looking to live on the West Coast, Santa Clarita is likely to be an appealing option, particularly for those hoping to settle in a suburb. The LA suburb offers some more affordable options for new entrants into the housing market, but Millennials who have well-paying jobs and families are likely to view Santa Clarita as a place to establish a long-term home.

“It’s difficult to say how the housing market will change as younger Millennials begin to enter it and how the first cohort of Gen Z homeowners will shape the market in the future,” says Jaffer. “In the current climate, however, it appears that Millennials are following Gen X and the Baby Boomers into the burbs.”

Millennials Are Going Suburban — Here’s What That Means For Santa Clarita

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