Today, the millennial generation is more likely to consider a home purchase, 85 percent more than other generations.
The mortgages market features 45 percent millennials, and increase compared to 37 percent for Generation X and 17 percent for baby boomers. An in-depth look into the purchasing requirements and preferences for the millennials reveals that they are different compared to other home buying generations.
Millennials wait for a long time before they finally purchase that first home. For the millennials, seeking further education takes precedence over homeownership. This generation is more likely to rent or even move back in with their family for a few years after college. They follow quite a bit of first-time home buyer guidance by getting their financial house in order before making any of the typical first-time buyer mistakes.
These millennial homebuyers have different preferences when you compare them to previous and later generations. Your prospective millennial homebuyer is likely to be more frugal, meaning that they are more likely to purchase used or older homes. Other critical considerations for this generation include open floor plans and easy access to their workplaces.
At the same time, the millennial generation has the added advantage of the latest home technologies that are rapidly changing the real estate market. From home purchase apps to carrying out independent online searches on their smartphones, millennials have at their disposal a wide range of tools that are making the home buying process straightforward and more uncomplicated.
Have a look at the Millennial home buying guide for more helpful guidance.
Moving Out of the City
A surprising millennial trend is that they do not want to live in big cities. As much as they value closeness to their workplaces, millennials are more likely to live in the suburbs. This is because the cost of living in the suburbs is much lower, and there is access to excellent schools.
Only a few, 15 percent, millennials have purchased a home in an urban setting, which is a considerable decrease from the 21 percent of previous years. For a couple of years, the numbers have been on the decline, and it seems like the trend will last for a few more.
More than 50 percent of millennial homebuyers purchase their first homes in the suburbs. Most popular suburban areas are those that feature access to light urban features. Some of these features include extensive retail areas and easy access to green spaces for exercising, biking, and hiking. Such neighborhoods allow homeowners to enjoy significant urban living aspects without dealing with the high cost of living.
The Search for More Space
Even though millennials do not mind buying used homes, they are more likely to look for homes that offer plenty of space. Space includes the outside yard and interiors. A significant focus for millennials is homes that have an open floor plan.
However, millennials will not spend more on expensive properties just because they have higher square footage. Instead, they are on the search for homes that already offer maximum use of the space available. If you are still not convinced, consider that 46 percent of millennial homebuyers want homes with a spacious and expansive kitchen area.
A large yard is critical, which is another reason why the suburbs hold such a significant appeal to millennial homebuyers. The sizable yard makes it easy for this generation to start families. Further, the yard offers space for playing outside with the dog, planting a garden, and relaxing outside in beautiful weather.
Mass adoption of the open floor plan is evident in the changing American work environments where traditional office settings are transformed into creative workspaces with public spaces. In the same way, the millennials now prefer fewer rooms but a bigger size, the opposite of what older generations opted for.
The super commuter is one who travels more than an hour to and from work and home. In a search for homes they can afford, millennials are more likely to invest in properties in the exurbs. Further, they are more willing to accept the daily commute of two or more hours, especially in line with the improved public transportation network.
One of the most environmentally-conscious demographic ages is the millennial generation, which is apparent in their attitudes when searching for the right home to rent or buy. Many renters are looking to go green as they choose a property, which is easier done in today’s real estate era. Besides, millennials are tech-savvy, so they have an idea of energy-efficient technology that can be added to the home.
Since most millennial buyers and renters are interested in mid-priced or entry-level homes, sellers can appeal to their environmental consciousness by outfitting such homes with energy-efficient appliances. Doing this will also justify asking for a higher price.
Even if the listing price is not as low as the millennial wound want, they will still choose a home that’s equipped with energy-efficient dryers, refrigerators, washers, and air conditioners.
More and more developers are becoming hip to the idea that energy savings and helping the environment are worthwhile causes. An excellent example of this is down south in Texas.
Environmentally conscious millennials moving to properties such as Dallas Galleria apartments can save money on energy bills while helping the environment.
Using Tech to Find Homes
Given that the latest real estate technology is available to any buyer from any generation, the millennials are making better and more use of the tech. Technology is continuously evolving, which is also a trend that is in the real estate market. Today, numerous real estate apps for mobile devices offer users a means of conducting their research of the Multiple Listing Service (MLS), giving them the ability to understand the real estate market even before they start the purchase process.
By 2017, 99 percent of the millennial generation had searched online whenever they were looking for a home. Around 58 percent of this number found homes they like online, a statistic that is expected to grow in the coming years.
Social media has also had a significant impact on the home purchase and rental habits of the millennials. Prospective home renters and buyers use Instagram, Twitter, and Facebook to find the perfect homes for themselves. Today, more than ever, it is critical that investors in the real estate market maintain an active online presence.
Due to the decreased desire to live in big cities and the willingness to move into fixer-uppers, it is clear millennials are looking for the best value their money can get. However, the desire for open spaces and the use of the latest home tech means that these buyers and renters still want homes with modern features and conveniences. If you are considering placing a home on the market, you must get it listed online.
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Use the above resources to make excellent decisions when you are buying or selling a home.
About the author: The above article on Millennial Real Estate trends in 2019 was written by Kyla Stewart. Kayla is an award-winning writer who discovered her passion for providing knowledge to readers worldwide on topics closest to her heart - real estate. Since her first high school award in Creative Writing, she continues to deliver awesome content through various niches touching the digital sphere.