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June 26, 2016

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Updated: 14 weeks 4 days ago

Work Smarter With Buyers, Not Harder

Wed, 03/09/2016 - 19:02

If you’re looking for yet another reason to attend the REALTORS® Legislative Meetings & Trade Expo in D.C., this is it. YPNers are being offered an exclusive rate of just $49 for the two-day ABR® designation course (Accredited Buyer Representative) taught by national trainers Adorna and Jenna Carroll.

The course will be held Monday and Tuesday, May 9 and 10, at the Washington Hilton. But don’t worry, you won’t miss any of the important YPN meetings or events. The course ends at 12:30 p.m. ET on the 10th so that students can attend YPN advisory board meeting at 1 p.m.

P.S. If course attendees rock their #realtorteam gear on day two (Tuesday, May 10) they’ll get a fresh cannoli from il Canale. Yum. Register here.

Now check out these amazing flyers. Based on these, you know it’s going to be a good class.

*This course is not approved for CE credit.

 

Leaders Build Stadiums

Tue, 03/01/2016 - 16:18

Nico Hohman

By Nico Hohman

Picture a stadium filled with 100,000 cheering fans rooting on their beloved home team. Now, rewind the clock to about six months before that stadium was even opened and packed with fans. The construction workers are in the middle of piecing together giant building blocks of steel, concrete, and bricks to build this stadium. Now turn the clock back two years before that moment, when an architect had a dream to build the stadium.

To most people, these may seem like logical steps in the building of a stadium. But to me, I believe these steps show what it takes to be a leader. I believe that great leaders are meant to build stadiums.

Leaders are believers. And the best leaders know they need to believe in three things to build their stadiums: They believe in positive results; they believe in others; and they believe in themselves.

@rock478, 2014; MorgueFile.

In 2006, when I was in high school, my younger brother Burton and I went to the World Cup in Germany. My mom was born and raised in Germany and my grandparents still live there today. I felt especially proud to go back to my native land to cheer on the United States’ men’s national soccer team.

The first match of the 2006 World Cup for the American squad was against the Czech Republic in Gelsenkirchen, just a few miles from my grandparents’ home town. Before the match, my brother asked me if we should paint our faces. I said, “Absolutely!” We painted our faces with blue stars on one side and red and white stripes on the other. We even had American Flags draped over our backs. I felt like Superman the entire day.

Throughout the match, Burton and I and the rest of the U.S. fan base always had the same intensity and belief as we cheered on our team. In fact, the American fans even have a chant that speaks exactly to that attitude:

I believe that we will win. I believe that we will win.

For you to become a great leader, you need to believe in positive results. No matter what the odds, and no matter what the obstacles, you need to believe that you will win.

Leaders are believers. The American fans in that stadium in Gelsenkirchen that day were believers. And true believers know how to build their stadiums.

A few years after the World Cup, I was a college student when I got a summer job working for a masonry contractor. One of my first assignments was to help the construction crew build a brick wall. I had never built a brick wall before, and it was in the middle of a sweltering, humid summer. After three and a half hours of terribly stacking as many bricks as I could into this wall, I couldn’t do it anymore. I physically fainted from heat exhaustion.

After coming to, my foreman told me something that has stuck with me to this day. He told me, “Son, you’re putting to much thought into the bricks. Believe that the mortar will do its job and the bricks will follow.”

You see, the mortar is the most crucial part of the brick wall, yet you should never notice that the its there. Without the mortar, the bricks would simply be stacked on top of one another with no support. You could stack a pile of 100 bricks on top of each other and a gentle nudge or push could topple the entire wall. Without the mortar helping the bricks do their job, the wall will fail. Without leadership holding the pieces of your business, your team, or your family together, the slightest push can cause the entire organization to fail.

A few years after I graduated from college, I decided to become a REALTOR®. No one in my family had ever worked in the real estate industry. I was under 30 years old working in an industry where the average age of an agent is over twice my age. Plus, my wife and I had just found out we were going to have a little baby boy. This was not a good time for me to quit my salaried job and go off on my own.

But I let none of that stand in my way. I didn’t focus on all the things that were there to hold me back. Instead, I chose to focus on the things that were going to make me a success. I chose to believe in myself. I knew that if I believed in myself, I could build my stadium.

From a world-traveling high school youth, to a college student with a part time job, and now as an adult working in real estate, I have learned many leadership lessons. The most important of these lessons is that you have to believe. Leaders are believers. Leaders believe in themselves; leaders believe in others; and leaders believe in positive results.

Go follow your dreams, achieve your goals, and build your stadiums.

Nico Hohman is a Tampa-based real estate pro with NextHome Discovery who works on renovation and rehab properties. Learn more about Nico at hohmanhomes.com or connect on Twitter: @thenicohohman.

Leaders Build Stadiums

Tue, 03/01/2016 - 16:18

Nico Hohman

By Nico Hohman

Picture a stadium filled with 100,000 cheering fans rooting on their beloved home team. Now, rewind the clock to about six months before that stadium was even opened and packed with fans. The construction workers are in the middle of piecing together giant building blocks of steel, concrete, and bricks to build this stadium. Now turn the clock back two years before that moment, when an architect had a dream to build the stadium.

To most people, these may seem like logical steps in the building of a stadium. But to me, I believe these steps show what it takes to be a leader. I believe that great leaders are meant to build stadiums.

Leaders are believers. And the best leaders know they need to believe in three things to build their stadiums: They believe in positive results; they believe in others; and they believe in themselves.

@rock478, 2014; MorgueFile.

In 2006, when I was in high school, my younger brother Burton and I went to the World Cup in Germany. My mom was born and raised in Germany and my grandparents still live there today. I felt especially proud to go back to my native land to cheer on the United States’ men’s national soccer team.

The first match of the 2006 World Cup for the American squad was against the Czech Republic in Gelsenkirchen, just a few miles from my grandparents’ home town. Before the match, my brother asked me if we should paint our faces. I said, “Absolutely!” We painted our faces with blue stars on one side and red and white stripes on the other. We even had American Flags draped over our backs. I felt like Superman the entire day.

Throughout the match, Burton and I and the rest of the U.S. fan base always had the same intensity and belief as we cheered on our team. In fact, the American fans even have a chant that speaks exactly to that attitude:

I believe that we will win. I believe that we will win.

For you to become a great leader, you need to believe in positive results. No matter what the odds, and no matter what the obstacles, you need to believe that you will win.

Leaders are believers. The American fans in that stadium in Gelsenkirchen that day were believers. And true believers know how to build their stadiums.

A few years after the World Cup, I was a college student when I got a summer job working for a masonry contractor. One of my first assignments was to help the construction crew build a brick wall. I had never built a brick wall before, and it was in the middle of a sweltering, humid summer. After three and a half hours of terribly stacking as many bricks as I could into this wall, I couldn’t do it anymore. I physically fainted from heat exhaustion.

After coming to, my foreman told me something that has stuck with me to this day. He told me, “Son, you’re putting to much thought into the bricks. Believe that the mortar will do its job and the bricks will follow.”

You see, the mortar is the most crucial part of the brick wall, yet you should never notice that the its there. Without the mortar, the bricks would simply be stacked on top of one another with no support. You could stack a pile of 100 bricks on top of each other and a gentle nudge or push could topple the entire wall. Without the mortar helping the bricks do their job, the wall will fail. Without leadership holding the pieces of your business, your team, or your family together, the slightest push can cause the entire organization to fail.

A few years after I graduated from college, I decided to become a REALTOR®. No one in my family had ever worked in the real estate industry. I was under 30 years old working in an industry where the average age of an agent is over twice my age. Plus, my wife and I had just found out we were going to have a little baby boy. This was not a good time for me to quit my salaried job and go off on my own.

But I let none of that stand in my way. I didn’t focus on all the things that were there to hold me back. Instead, I chose to focus on the things that were going to make me a success. I chose to believe in myself. I knew that if I believed in myself, I could build my stadium.

From a world-traveling high school youth, to a college student with a part time job, and now as an adult working in real estate, I have learned many leadership lessons. The most important of these lessons is that you have to believe. Leaders are believers. Leaders believe in themselves; leaders believe in others; and leaders believe in positive results.

Go follow your dreams, achieve your goals, and build your stadiums.

Nico Hohman is a Tampa-based real estate pro with NextHome Discovery who works on renovation and rehab properties. Learn more about Nico at hohmanhomes.com or connect on Twitter: @thenicohohman.

Dealing With Mistakes

Wed, 02/24/2016 - 09:15

John Blom

By John Blom

In my last post, I talked about the challenges and opportunities that arise when leading in a time of change. Periods of change allow for new plans to be created – plans that might not have been possible in the previous status quo. But not every plan, whether formulated in a time of change or not, ends up working out as intended.

Everyone makes mistakes, and taking on a leadership role does not magically bestow upon anyone the ability to avoid them.  In reality, leaders are often called on to make decisions with imperfect information or to take action in difficult circumstances, both of which increase the chances of making a mistake.

As a leader, you need to make peace with the fact that you are human, you will make mistakes, but making mistakes does not mean you are an ineffective leader. Making wise decisions is an important trait as a leader, but the ability to recognize when you have erred and taking appropriate steps to remedy the situation is perhaps even more important.

When reacting to a blunder, the first thing a leader need to determine is whether or not the damage can be undone, and if so, make the fix as quickly as possible.

A few weeks ago, I received (as president of our local association) a request for REALTOR® PAC funds to help pass an important local school levy. The levy was a replacement levy that maintained the current rate, meaning it was not a tax increase, just a continuation of the current tax. Our local PAC fund has a healthy balance, quality schools are important to the association, and it was an opportunity for some positive press while completing a requirement for core standards.

This kind of request would typically first go through our government affairs committee for their support, then through the RPAC committee for a recommendation of how much to contribute. But the request came in only a few weeks before the levy vote, so answering quickly was critical. Believing the issue to be non-controversial, I went to the RPAC chair and asked that the request go straight to the committee via e-mail.

Within 30 minutes, there were several responses that raised concerns about why government affairs had not first made a motion and also why we were contributing to one school district and not the other large school district in our area that had a similar levy on the ballot. The answer to the latter is that only one district asked us for a contribution. My initial reaction was one of annoyance, that what I viewed to be a pretty simple decision was being held up over what I first thought to be trivial issues.

@jdurham; 2010. Morguefile.

While my intentions were always good, I came to realize the concerns being raised were totally valid. We pulled the motion back, brought it to the government affairs committee, and received their approval to support both levies. It was then brought back to the RPAC committee and those members voted to provide funds to both as well.

The end result reflected the best possible outcome: Not only did we fund the initial request, we supported another school district that had not even asked. While some people on each committee still expressed concern about the expenditures, they had the opportunity to make their opinions known.

If I had tried to push through the vote, I think the motion likely would have passed, but there would certainly have been hard feelings among the committee. The association would also have missed out on the opportunity to help the other local district.

The mistake I made in this situation was forgetting that following the right process to make a decision can be equally important as the decision itself.

While this situation was easily fixed, there may be times as a leader when you make a mistake that cannot be easily repaired. The same week as the previous scenario I described, I made one of these at home. On Wednesday nights, my wife gets together with a group of her friends. While I try to be home to put our kids down for bed every night, she doesn’t mind if I miss one or two nights a week, so long as it is not Wednesday.

I’m sure you can see where this is going – on Wednesday afternoon in the middle of reviewing the week’s transactions for the office and prepping for an association meeting, a call came in from a new buyer who wanted to look at a home.  I knew I had commitments the next two evenings, so I asked if they could meet that night, and they could.

I sent my wife a text and let her know I wouldn’t be home until after the kids went down. Only when I was leaving to office to show the house did I realize what I’d done. At that point, it was too late to change the meeting or to fix the situation at home.

I can usually admit to a mistake when I know I can undo it, but when it cannot be fixed my first reaction is to get defensive and rationalize the decision. I would be willing to bet I’m not the only one. We all have pride and admitting a failure, regardless of the size or scope, is not easy to do.

As a leader and as a person, having the humility to admit not only to yourself but to those around you that you did make a mistake is critical.  Trying to defend your action will only harm the relationship between you and the rest of the organization. In contrast, owning your action, admitting the mistake, apologize if necessary, and describing what you are going to do in the future to not repeat the blunder will give the organization confidence that you can be trusted.

No one wants to make mistakes, but it’s important to know going into a leadership position at some point you likely will. Of course, you still do everything in your power to be the best that you can be, but you should also think about how you will respond to the first time you screw up.

When it happens, the first step is to determine if it can be fixed or not. If it can be, don’t let pride stop you from doing it.

If it can’t be fixed, admit to the mistake, communicate what needs to be said to those effected, and put the mistake (but not the lesson) behind you.

John Blom is a broker for the Hasson Company REALTORS® working in the Portland/SW Washington market. He is also the 2016 president for the Clark County Association of REALTORS®. You can find him on Twitter: @johndblom, LinkedIn, on his website www.johnblom.com, or e-mail him at johnblom@hasson.com.

#Y4YPN From Fort Collins, Colo.

Thu, 02/18/2016 - 09:08

The #Y4YPN campaign is a video series celebrating what makes YPN valuable to its members. Learn more.

Leanne Goff

By Leanne Goff

Brandon Myers is the latest YPNer to take the #Y4YPN challenge. During my interview with Brandon, he talked about how he became a REALTOR®, discussed his favorite local YPN events, and shared some advice for new agents.

Before becoming a REALTOR®, Brandon graduated college and took a job for a robotics company that specializes in nuclear decommissioning.

… I guess you can say he’s an expert at defusing intense reactions.

Brandon said marketing robotics was interesting, but his family has been building custom homes in Northern Colorado for more than 20 years. Home building has always been a big part of his life, from cleaning up construction sites to selling homes. As you can see, Brandon is a natural born REALTOR®. He was listing houses as a side job while pursuing his robotics career, but he eventually decided that real estate is his true calling.

Now licensed for three years, Brandon is not only a REALTOR® but also an owner of WestMark Homes, building semi-custom homes on a golf course in Windsor, Colo. As a broker with Windermere Real Estate, his primary business focus is on community developments and new home construction sales.

For his local REALTOR® organization – the Fort Collins Board of REALTORS® – his passion is helping people become more involved and promoting goodwill in the community. This year, the Northern Colorado (NoCo) YPN had two very successful service events: Adopt-A-Family holiday drive and a community outreach project with the United Way. Brandon also enjoyed the Yard Games Social Event that NoCo held last June.

For the Adopt-A-Family event, NoCo YPN adopted 12 families for the Christmas season, soliciting gifts and cash donations from the entire membership. After the funds were collected, the YPNers went on a shopping spree for gifts as well as basic needs items, then held a wrapping party before delivering the presents to the families.

During the community outreach project with the United Way, NoCo YPN was able to raise more than $5,000 to purchase a playhouse that was constructed and painted by the group. The effort was so successful that a local newspaper covered the event.

During the Yard Games Social Event, NoCo YPN teamed up with affiliate partners and their Rookie Club for games and fun, complete with food trucks, craft beer from local breweries, a bag toss, giant Jenga, and an adult Big Wheels race! The event also helped raise $8,000, which was given to a local homeless organization.

For young agents in the business, Brandon’s advice is to continually pursue the question: “How and what does it take to be successful?” He believes this question aligns with one’s humanity, values, and ultimately makes up what you are about. Real estate is a long term business, and how you make up your mind to fight through that question will drive your success, he says.

“When starting out, recognize that you can’t do it all at once,” Brandon says. “Focus on your strengths, develop a market niche and specialty, hone that specific real estate craft, and the rest will come.”

Leanne Goff is a managing broker with TrailRidge Realty, an independent real estate agency in Boulder, Colo. She has been licensed since 2008, and is active with the Boulder Area REALTOR® Association. Her work with BARA’s YPN led to achieving NAR’s Small Network of the Year Award in 2014. Connect with Leanne on Twitter: @leannegoff, or on LinkedIn.

Micro-Projections About the Economy

Mon, 02/08/2016 - 19:21

Lauren Campbell

By Lauren Campbell

I have a passion for reading and studying all things related to the economy, so I wanted to share some of my predictions for 2016:

This year you can expect the national economy to have positive growth, and a major driver of that growth will be household spending increases (year-over-year). The increase in spending correlates with the dollar gaining strength and expected payroll increases this year.

The dollar has surged against the Euro and is almost 1:1 in value. A strong dollar makes the price of imported goods cheaper and more affordable. The downside is that as the U.S. dollar increases, the external demand for product will weaken in parallel. This increase in value was one of the reasons the Federal Reserve announced a rate increase in December 2015 (which is yet to be seen). The inflation rate is set to rise this year as well, but as per usual, when the pace of inflation quickens there is possibility for more volatility in the market. In fact, there is risk for a protracted slowdown in 2016 and into 2017.

Job growth may also slow as we get deeper in 2016, though we will still continue to add jobs overall. With the U.S. approaching full employment, wage pressure is on the rise, and many employees will see a pay raise this year as the labor market is tight and demand for skilled workers is high.

@DodgertonSkillhause; 2014. Morguefile.

Interest rates remain low (even though a rate hike was announced in December) and the Federal Reserve will continue to pursue a cautious policy marked by a very gradual tightening trend. Rents and medical services will likely drive rates from the Federal Reserve moving forward in 2016. Near-term projections suggest that there is moderate risk in 2017-2018, especially in interest rate-sensitive areas such as housing.

It is likely that the Federal Reserve will gradually increase interest rates over time, and inflation will not be a major risk to the market. It is a widely accepted belief that a large increase (more than 175 basis points per year) could seriously affect housing sales and starts, causing an economic slowdown. Instead, interest rate hikes will likely not be aggressive until job employment falls below 5 percent and remains there for some time.

Rental rates across the U.S. will continue to increase, but the threat of interest rates increasing means more from the Millennial generation will consider purchasing a home as the cost to rent surpasses the cost to own. This will impact the real estate sales market favorably, but property management firms and multifamily investors will also see the effects of this trend.

Lauren Campbell is a commercial real estate agent working in Tampa. Connect with her online at www.tampabaycre.wordpress.com.

Don’t Give Up. Don’t Ever Give Up.

Wed, 02/03/2016 - 15:53

Nico Hohman

By Nico Hohman

We have all failed at some point in our real estate careers. We didn’t get that listing, we lost a client, or one of our clients didn’t get the house they wanted because of failed negotiations.

But people are not failures; we are not failures. Failure is simply an event that adds to our learning experiences. Failure is just the first step on the road to long term success. Let me give you an example to show you what I mean.

In my free time I play on a slow-pitch, co-ed softball team with my friends. We play in a recreational league, and we mostly play for fun. That being said, I am competitive – super competitive – and I always want to win. Which makes what happened in my last game even more miserable.

I struck out swinging.

I struck out badly. The pitches I swung at weren’t even strikes. The last pitch was a good foot above my head and outside the plate by a country mile. Plus, we had the bases loaded with two outs, and we were down by three runs about mid way through the game.

I was mad. I was upset. I felt defeated, even embarrassed. How could I strike out swinging in slow-pitch softball?

@Penywise, 2009. MorgueFile.

Once I had time to stew over my personal defeat (I still had to go play in the field in the next inning after all) I realized why I did what I did. I also knew exactly how to fix it. I lost sight of my goal. I lost sight of what I needed to do in that situation. My job was to get a hit and bring the runners home to score. Instead, I tried to be a hero and swing for the fences.

The next time I was up to bat, I was the first one up in the inning. There was less pressure since my team was leading by a few runs at that point. I took a deep breath, dug my foot into the batter’s box, and then, PING! My hit sailed over the fence for a home run.

Before that second time up to bat, I remembered my fundamentals. I remembered my training, and realized that just because I struck out in an important part of the game, it didn’t mean I was a failure. It didn’t even mean that the game was over and we were hopeless to win. The strike out was just an event. It was the first step on the path to long term success.

In real estate, we should all refocus our mindset to realize that while losing out on a listing presentation or potential transaction is not a big deal. It does not mean we are failures. It is simply a learning experience. We take a deep breath and examine what we did right and what we did wrong. Then, we take these learning experiences and apply them to the next time we step up to the plate.

We don’t give up. We don’t ever give up.

Nico Hohman is a Tampa-based real estate pro with NextHome Discovery who works on renovation and rehab properties. Learn more about Nico at hohmanhomes.com or connect on Twitter: @thenicohohman.

Build a Real Estate Business, Not a Job

Mon, 01/25/2016 - 16:04

Ryan Fitzgerald

By Ryan Fitzgerald

Let me ask you a question: Do you want real estate to be the only job you have for the rest of your life?

For some, the answer might be “yes.” For me, the answer is easy: “No.”

I don’t want real estate to simply be my job; I want to operate a real estate business. If you share in this goal, then here are seven ways to build that business.

1. Build a Strong Foundation

If you’re going to build a successful real estate business, you need to start with a strong foundation. It’s similar to building a house, your foundation is going to be what your real estate business is built on.

Everyone has a different foundation, whether it’s through networking, honing in on a certain market or niche, cold calling, door knocking, social media, direct mail, buying leads online, or a combination of methods – there are many different types of foundations. My foundation is my real estate website.

A strong foundation for your real estate business sets your path toward creating a memorable brand and generating leads.

@FlashBuddy; 2014. Morguefile.

2. Branding

Your brand should embody the personality of your business and what people can expect from you.

If you’re building someone else’s brand, you have a job. If you’re working to build your own brand, you’re building a business. And every business decision you make is going to have an impact on your brand. Always ask yourself, how will this decision improve my brand and does it line up with my company values?

In the end, a successful brand will help you generate more leads.

3. Generating Leads

What are your strengths? If you’re a great networker, networking will generate leads for you. If you’re great on the phones, cold calling will generate leads for you.

There are different strategies and ways to find leads, just don’t waste time on something that isn’t your strength. Tap in on your natural abilities. For instance, if you’re really good at social media, don’t make cold calls. Generating leads through social media is a skill; it takes work and don’t let anyone tell you differently.

Part of the reason people fail in real estate is because some brokerages continue to promote outdated real estate marketing techniques. I know this all too well because it nearly cost me my business. I was told the only way to be successful in real estate is to make cold calls. That was simply not true for me.

Be the best at what you’re already good at.

4. Lead Conversion

You should always be working on your lead conversion and follow up process. Don’t expect to convert every lead you generate. You need to set proper expectations for yourself and your business.

It’s wise to underestimate your lead conversion percentage (from lead to closed transaction). This is one of the most important business metrics you’ll come across because it allows you to reverse engineer the lead generation process.

If you have 3,600 leads per year, and you are converting at 1 percent, you are closing 36 deals per year. Now figure out where/how you’re converting the most leads and look at where you’re losing leads. Maybe you need to tweak your lead follow up process. Monitor your successes and connect that to your daily, weekly, and monthly prospecting activities and goals. If you go from converting 1 percent to 3 percent of your leads, you’d then be closing 108 deals per year.

Carefully and consistently monitoring your lead conversion will help you determine what results you need in order to accomplish your goals.

5. Systems and Processes

You need to be documenting everything you do – especially when it comes to your systems and processes for generating leads. You should also find ways to automate your lead generation tasks – such as through your CRM. Plus, easier tasks will slowly begin to fall on the shoulders of others as you hire assistants and eventually grow your team. You need to be OK with this. Letting go will allow you to grow your business because it gives you back a valuable asset: time.

6. Customer Service

Customer service is everything in real estate. None of these previous points matter if your customer service isn’t impeccable.

Whether you’re generating new clients with your time, money, or effort, finding business is expensive. What’s not expensive is providing great customer service so that your clients stay with you for life. If the experience your client has is 10 out of 10, they are going to promote you to their friends as being the best local real estate agent.

If your customer service takes a backseat, you will reach a tipping point and never be able to grow your business any further. Without great customer service, even a lead-generating machine is only going to grow as big as his or her “new clientele.”

7. Be Patient

This is something I struggle with personally. Sometimes I find myself wanting to press fast-forward on my business so I can get to where I want to be. Then I realize that pressing fast-forward takes away from the joys (and process) of getting there.

Don’t allow a lack of patience to control your decision making early on in your real estate career. Stay true to what you’re trying to accomplish and understand what is in your control and what is outside of your control.

The best views come from the hardest climbs; appreciate the struggle.

Ryan Fitzgerald is the owner of Raleigh Realty in Raleigh, N.C. Connect with him on Facebook, Google +, LinkedIn, Twitter, or Pinterest.

Millennials, Markets, and Housing Mobility

Wed, 01/20/2016 - 12:35

Lauren Campbell

By Lauren Campbell

According to a recent Urban Land Institute study, most millennials are not living in the urban core – though the research shows that they would like to be.

Millennials – the generation that bore the brunt of sluggish hiring cycles during the recession only a few short years ago – are not bringing home salaries comparable to what their parents did at their age. What this means for millennials, then, is compromise. They rent instead of own in trendy downtown settings. They live on the fringes of downtown, soaking in what they can of the live/work/play model while often struggling to pay for it.

So, who is buying downtown? Surprising to some, it is empty-nesters and retirees who have found walkable urban cores so attractive. This quasi-retirement style living appeals to them on many levels. Amenities, downsizing, and proximity to entertainment and work all play a role in their exodus from the suburban ring to the big metropolises. In contrast, many millennials cannot afford the high prices of ownership in a downtown setting, and worse, rents have begun to skyrocket as well. This is pushing many a young renter out of the downtown core.

Downtown Chicago; @clarita, 2009. Morguefile

With this, the recent success of urban neighborhoods outside the downtown ring can be seen across the country. In Greenpoint (Brooklyn, N.Y.) 14 percent of the residents are age 25-34. The same goes for South River City (Austin, Texas), Clarendon (Washington, D.C.), Wicker Park (Chicago), and North Loop (Minneapolis) – all showing 14 percent to 17 percent of their residents are millennials. The success of these areas is proof that the younger crowd are landing just outside the core of downtown centers.

Or, if they can’t afford that, they move to nearby suburbs that are more or less considered sub-urban rather than entirely suburban. This is something you may want to take note of in your market.

While the vibrant resurrection of these often-historic suburban neighborhoods is absolutely beneficial to the overall success of the local real estate market, it is worth noting that perhaps the neighborhoods would not be as attractive to the millennial generation if home/condo prices and rents were attainable in the downtown core.

As with all real estate, and throughout history, balance is key – an overpriced market will eventually correct, and an overly saturated one will too. Millennials are finally able to access jobs that can afford them the ability to survive on their own and even buy, this will eventually lead to a dramatic increase in new households for many regions in the U.S. These salaried positions point to stability, which will allow the millennial generation to choose how they want to live instead of their living situations being a product of necessity.

The question is, what will they choose? Will millennials buy condos? Continue to rent? Or, like their predecessors, will suburban communities with fences and yards and space away from neighbors still draw them to the outer-ring suburbs? Only time will tell.

Lauren Campbell is a commercial real estate agent working in Tampa. Connect with her online at www.tampabaycre.wordpress.com.