Introduction
The millennial generation has emerged as the dominant market for homebuyers in Latin America. However, they face increasing challenges in becoming homeowners due to limited access, rising prices, and complex processes. According to the proptech Best Place to Live, only half of people in Latin America feel prepared to tackle home acquisition.
Millennials’ Dominance in Home Purchases
In 2024, millennials (aged 31 to 43) accounted for 56% of home transactions in the region, while Generation X (45 to 60 years) made up 29%. Baby Boomers and Centennials contributed 9% and 5%, respectively, according to data from real estate consultancy 4S Real Estate.
Challenges to Homeownership
Tomás Cartagena, General Director of Best Place to Live, highlighted that the rising cost of urban land due to regulatory restrictions from local and central governments is a significant issue. This makes it difficult for people with fewer resources to purchase a home without subsidies.
“While progress is being made in the industrialization of housing, technology plays a crucial role in reducing housing costs and enabling more people to own homes,” Cartagena added.
Purchase Experience
Besides price, experts emphasize the need for the real estate industry to enhance the homebuying experience for young people, particularly by simplifying transactions.
“Some developers still don’t know how to sell to millennials, leaving over 50% of potential buyers out of their business. Many believe millennials buy less real estate, but it’s the companies that complicate operations,” Cartagena explained.
Best Place to Live’s 2024 customer satisfaction study found that six out of ten real estate clients would not recommend their selling company due to the experience, not the product.
Evolving Goals
Although owning a home is still often linked to family formation, newer generations have diverse long-term goals related to property acquisition.
In 2024, 68% of Latin American buyers purchased a primary residence, while 24% sought an investment or rental property and 8% aimed for a vacation home.
Cartagena noted that early retirement is a trend among Latin American millennials, leading some to live with roommates and invest in a home or apartment for future security.
“Those who don’t understand millennials need to start. Many real estate companies have adapted their sales models to assist them, with centennials as young as 27 already investing in properties—a smart move for securing their future in a home,” Cartagena concluded.
Key Questions and Answers
- Q: Who are the primary homebuyers in Latin America? A: Millennials (aged 31 to 43) make up over half of home purchases in Latin America.
- Q: What challenges do millennials face in buying homes? A: Limited access, rising prices, and complex processes make it difficult for millennials to become homeowners.
- Q: How can technology help address these challenges? A: Technology, particularly in housing industrialization and cost reduction, is crucial for enabling more people to own homes.
- Q: What improvements are needed in the real estate industry’s homebuying experience for millennials? A: Simplifying transactions and better understanding millennial preferences are essential.
- Q: What are the evolving goals of Latin American homebuyers? A: Alongside traditional family-oriented goals, newer generations seek diverse long-term objectives related to property acquisition.
