Researchers by nature and lovers of all things digital, millennials are a generation that makes for the second largest section of the population, expected to outnumber the generation of Boomers. Millennials are already reshaping the housing market, and their heavy influence will only continue to grow as more millennials start purchasing homes in the next few years.
Learning how to accommodate the needs of these tech-savvy home hunters is a wise investment for anyone looking to appeal to millennial buyers and renters. Here are some of the most prominent millennial housing trends to keep an eye on.
Millennials are well-informed home hunters
Being born into a digital era, millennials are a generation of home buyers that relies on technology to make the decision-making processes easier. Whether they’re searching for a moving company to help them relocate or getting to know what they’re looking for in their dream home, millennials are no strangers to utilizing technology to their advantage in order to get the best deals possible.
They’re generally willing to do their research and ensure they’re well-informed before committing financially. This is no surprise given how obtaining necessary information is much easier nowadays than it was for the previous generations. With information being just a couple of clicks away, searching for a perfect home seems to be easier than ever for millennial home hunters.
Millennials prioritize affordability
Many millennials still aspire to have their own house one day. However, saving money for deposits and down payments is made more difficult (sometimes even downright impossible) due to the financially crippling amounts of student loan debts.
In fact, in a 2017 survey conducted among millennials, 83% of the respondents who didn’t own a home said they would agree that their debts were significantly impacting their buying ability. Those who did own home still carried large amounts of student loan debts that burdened them. When looking to appeal to the millennial buyers, it’s important to keep their buying ability in mind and set the prices accordingly.
Millennials tend to rent for longer
While renting is a necessity for millennials who can’t afford to buy a house, for others, it’s a matter of choice. Homeownership does have its benefits, but considering the number of hidden costs that come with it, some millennials simply choose to forego this big financial investment and continue renting instead.
The unexpected realities that come with the status of a homeowner have many millennials seeking rental properties that offer the same level of comfort you’d find in a house, only for much less. Smaller spaces in particular are gaining in popularity, and studios for rent have become a standard in urban areas. Safe, fully-equipped, and designed with function in mind, these apartments tick all the right boxes when it comes to millennial renters, and the fact that they come with all-inclusive rent makes them all the more attractive to those embracing the rental lifestyle.
Millennials are more willing to relocate
Whether it’s higher-paying jobs, better standards of living, or simply safer neighborhoods for raising their families, there are many reasons why millennials would be willing to relocate. Millennials generally seem like they’re not afraid to turn over a new leaf and start fresh in another city or even another country. Their hunger for a change and willingness to learn and grow outweighs their fear and what-ifs of moving homes. They’re more attracted to areas that have lower unemployment rates and where the costs of living as well as the housing expenses are in line with their budgets.
Millennials know what they want
While millennials might wait longer before making such a big financial commitment such as purchasing a house compared to the previous generations, one thing is for sure – they know what they want. Many of them are moving out of their family home or looking for a place they can call their own after years of being renters. This means that they have plenty of time to decide what their dream homes should look like and which things they’re willing and not willing to compromise on.
Although they might not need to attend as many open houses until they spot a perfect home, these cautious home hunters still take a while until they’re sure about their purchase. On average, millennials will take about eight weeks to make up their mind, with some of the millennial housing preferences including smart home devices, walk-in showers, and larger square footage.
Conclusion
Given the influence that the millennials have on the housing market, it pays to keep up with the current trends and find a way to appeal to this section of the population. Keep in mind all their must-haves and priorities, make the necessary alterations, and you’ll have no trouble staying on top of millennial housing trends.
