The rise of the young buyers

  Two years ago, when he was 26, Matt Winter paid a little over $ 1 million for four-bedroom, Mediterranean-style, in Culver City, the artistic section, formerly industrial Los Angeles. This month, the now 28-year-old Mr. Winter, who runs her own business interior design, paid about $ 1.7 million for his second home, a three bedroom, Spanish-revival in Westwood, a neighborhood near UCLA.

"I always thought that with your money in real estate is the safest thing to do and the best if you want to grow your personal wealth," says Winter, who founded his design company on 23rd Goods M. No winter in the stock market are, he said the market Spooks "" him, and he prefers to invest in real estate.

Mr. Winter is part of a growing group of young affluent buyers who have never seen in the world of high-end real estate, the purchase of real estate prices and a rate proceeding that brokers will tell you that they are n. Real estate brokers say that young people are more expensive to buy houses than before. They are also more likely to buy multiple properties, and use it as an investment. Real estate has increased more attractive, say young buyers, compared to the equity markets, which has entered the workforce during a market correction to riskier one generation.

In recent years, low interest rates back home at lower prices also made it easier for people in their 20s and early 30s, the demographers call "Generation Y" or coupled to Buy "Generation Y".

"In the past two months, half of the people I sold houses were young entrepreneurial types, and they were to buy all households to more than a million dollars," said Michael Rankin, Managing Partner of TTR Sotheby's International Realty in Washington , DC "A few years ago this type of buyer was invisible. We have young people buy condos start for a few hundred thousand dollars., but this new wave will skip this step and go directly for the upscale home."

In March, Mr. Rankin helped negotiate a grant Allen, a 34-year-old, in the venture capital works and paid $ 1.1 million for a three bedroom town house with 2,400 square feet of space in Logan Circle DC. His 28-year-old girlfriend also owns an apartment in the city, but in part because of the opinion of Mr. Rankin, the couple decided to keep it as an investment and rent it out now for $ 3250 per month. "The stock market has emerged in recent times, but I usually with a lot of skepticism," said Allen, who said that he had recently reduced its commitment to public action for about two-thirds of its assets taken from three quarters. "These days I feel like you should be in something that is more of a sure thing set your money."

While the homeownership rate fell last year in the Middle Ages, the rate has actually increased dramatically among young people aged 25 to 34 years, according to data from the Census Bureau. And while the average age of first time home buyers remained relatively constant at 31 in the last decade, brokers and analysts also say that the richest 10% of Generation Y have a profound effect on the future of the property market. Spending 10% of which represent one-fifth of all U.S. dollar on primary residence purchases and spent over the next three years so that, according to the 2013 survey of ease and wealth in America, which annually carried out by American Express Publishing and Harrison Group, a market research company.

And according to a new report released by the National Association of Realtors, Generation Y now make up the second largest group of recent home buyers, 28% of the pool. ("Generation X", the slightly older age group, in the first place.)