Even more importantly, they are the largest group of buyers in the real estate market.
Consequently, this diverse population brings about unique experiences and worldviews, shifting the way we buy and sell. And although there are many problems that they face, mostly financial in nature, millennials are poised to reshape the economy and real estate market with it.
A slow start
Now, it is evident that millennials have been slow to enter the housing market. This reluctance is fueled by financial hiccups and problems such as student loans, tight credit, and high unemployment rates. While 37% of them are concerned about making down payments, 30% are worried they will blow the budget when buying a house for the first time.
That is why the number of millennials who decide to live with parents is at an all-time high (30%). Likewise, many are forced to rent a property rather than buy it. On the other hand, the plans to gain independence are mostly postponed, not ruled out. Generation Y merely embraces a different kind of a long-term investment plan.
On a budget
The aforementioned budgetary constraints have a distinguished role to play in the home buying process. As prevailingly first-time buyers, millennials spend around $200,000 on a home, which is 18% less than repeated buyers. For sellers, this puts a focus on the affordability of the home, as well as low maintenance and renovation requirements.
Big, expensive homes are not in the spotlight anymore. Instead, the competition for reasonably priced starter homes in suburbs will increase. Also, some buyers are shrewdly opting for winter purchases, when bidding wars and inflated prices dwindle.
Investing time in a proper research
Millennials are known for making hard decisions and not being afraid to invest a ton of time and money into their research. This is a lengthy process, whatever they’re buying: from a new pair of jeans to a new iPhone, they will investigate as much as they can, no matter how long it takes. But, when it comes to buying a new home, millennials are definitely going the extra mile.
What this basically means is that they’ll buy a home they want, but not right away. Taking their time to rethink all their options and investigate every inch of a property they could potentially buy extends the purchase time of a home indefinitely.
But, on the other side, this also means that millennials are going to end up being totally satisfied with their purchase and some of them probably won’t mind spending the rest of their lives in a home they end up buying in the end.
It goes without saying that millennials are tech-savvy and adore the striking marvels and handy tools of the cyber world. They were quick to harness the power of online platforms for scheduling visits, finding targets, carrying out inspections, and acquiring information.
This has a profound impact on real estate agents, who struggle to keep up the pace. After all, relying on technology to make purchases is not a passing trend, but a state of affairs in the information age. Therefore, real estate agents must provide added value and compete with real estate websites and applications.
Speaking of using technology when purchasing houses, this is another issue we need to take into consideration. Millennials aren’t just using technology while looking for the perfect home, but even after that as well. In other words, they prefer properties that are equipped with all the latest tech and allow them to lead a more relaxed life without bothering with these details.
In practice, this means that more and more sellers and real estate agents around the world are turning your traditional houses into the so-called smart houses.
These are equipped with the latest applications from automated HVAC and lighting systems to various smoke detectors, air quality control monitors, and home security systems. All these applications are easy to handle and use, which is why millennials just love having them in their home.
New renting solutions
Despite being young, millennials are generally not fans of living in an apartment or house rental. Instead, they prefer owning a home they live in and lots of them are working towards being able to afford purchasing such a home as soon as possible.
Some have limited budgets are even a lack of proper credit. It is not out of the questions that some will even have to look for a no credit check apartment if they are just starting out.
But, just because most of them are doing that doesn’t they all feel that way; on the contrary, being so different and unique, some millennials actually don’t mind renting a place, but under very special conditions.
Many of them like to invest in the futuristic duplex design and make their home functional and set for their future. Champion Homes has some excellent examples to look at for this type of housing choice. Quite often condos are a top consideration when it comes to purchase decisions.
Rethinking the priorities
Having grown in the times of rapid change, millennials endorse a distinctive outlook on home ownership and a different list of priorities. Things that they value most are privacy, ample space (both indoors and outdoors), and safety. It is interesting that only 6% of millennials have obtained a multi-generational home.
This is to say they want to live on their own and seek predominantly single-family homes (39%). Only 15% are looking for townhomes and just 10% want to live in a condo.
Location of the home is important as well, especially in terms of public transportation, cultural amenities, entertainment, vicinity of the city center, etc.
Speaking of location, this is another important issue for all millennials. As mentioned above, they prefer finding homes that are well connected to all strategically important places in their town, but not all millennials want that from a home.
On the contrary, lots of them want to get away from the crowd and the noise, which is why they’re going to suburban locations more than ever.
Picking this over urban areas is never easy, but if you value your privacy and inner peace over a cool house location, you might be making the same decision as well. What you need to remember is that living in the suburbs doesn’t have to be the end of the world.
New-look housing market
With 2021 just around the corner, many experts are eager to make predictions about forces that will influence the market. One of the most prominent trends is the rise of the millennial generation. Their sheer size, spending power, and the urge to settle down speak volumes about their importance.
They are driven by a different set of priorities and expectations and want a new kind of Realtor. Despite the fact that financial issues plague many plans and dreams, the facts and figures announce a new dawn in the real estate market. Compared to this year, 2021 may trigger seismic shifts and facilitate a decisive surge in home sales.
As you can see, millennials are influencing the housing market left and right. Whether it’s the prices, the sizes, the locations, or the visual appeal of their homes, they’re making a statement and their choices are here to stay!
The above article on how millennials are changing the housing market was written by Emma B. Joyce. Emma is a blogger based in Australia. She is an authentic home decor and DIY fanatic. Emma is interested in music and also is a big reading enthusiast. Finding new designs and patterns is her daily task. She got hooked on home accessories and decorations during her traveling and now cannot stop searching for further inspiration.