Every generation makes its mark on society with certain notable characteristics. The Boomer generation is remembered for their contributions to building the American economy, while Gen Z is associated with the start of social media.
The housing market has not been immune to the generational changes, and Millennials, the generation of Americans born between 1981 and 1996, have changed the market radically.
Not only do they have considerably more wealth than other generations, but they also have some very unique buying habits. Whether it’s the influence of growing up at the onset of the technological boom, or something else entirely, knowing the trends of this age group is essential for anyone interested in the real estate world. So, how are Millennials changing the housing market?
New builds are increasing, and not just for starter-homes
In pursuit of the American Dream achieved by older generations, many Millennials want to build their own place fit to their standards. Because many are entering the market later than those that came before, Millennial home buyers are searching for bigger, new homes because they can afford them. They value the ability to create something all their own and building a new home means less upfront maintenance costs. Gone are the days of “fixer-uppers”… if they can afford it, they are looking for the best.
Millennial buyers are looking for more upscale amenities, including smart technology
This generation of buyers is looking for appliances that have all the smart capabilities of their phones and computers. Home systems that are sync-able, easily controlled by voice recognition, and accessed through a personal device are some of their favorites.
Properties that prioritize the environment are popular
Sustainable building practices, energy-efficient appliances, and access to renewable energy sources like solar panels can make a property stand out. With an increase in the conversation around climate change, eco-friendly options are at the front of the mind of many Millenials.
The suburbs are a popular destination for many
Millennials prioritize work and want to be close to the office. However, they’re often opting for more suburban living where there is more space, rather than city living.
Much of the initial search process occurs digitally, and can last a long time
The advent of websites like Zillow have changed the way that home buyers find their perfect space. Much of the communication between Realtors and potential buyers happens online and, due to the vast availability of options and desire to find the “perfect” place, the search can last a long time.
If you’re feeling surprised, know that Millennials have not changed everything. They still want and need assistance from experts in their search. Even though the housing search almost always starts online, it ends in the hands of a Realtor or trusted professional.
Are you a Millennial interested in buying a home? Or a current homeowner looking for refinancing options? Contact Certified Mortgage Planner and Construction Loan Specialist Ed Currie for a free consultation, to find the best rates, and have an expert by your side. For more tips and our latest updates, check us out on Facebook, Twitter, LinkedIn or Pinterest!