The millennial generation has rapidly become a force to reckon with in the American home buying arena. The definition of the millennial generation is those individuals born between the years of 1981 and 1997. This means that older members of this generation are now 37 to 38 years old, a prime age in the home buying market.
Compared to other generations, prospective millennial homeowners have different preferences. In fact, this generation is considered more frugal compared to previous generations, so they are more likely to buy used or older homes. Below are some things that the millennial homeowner is looking for while on the housing market.
Avoid Big City Living
Surprising, millennial home buyers and renters don’t have the desire to live in the big cities. While they place great value on conveniences of living close to their workplaces, they prefer suburban neighborhoods. Such homebuyers find the lower cost of living and access to good schools in the suburbs an attractive factor.
Only 15 percent of millennial homebuyers purchased a home in an urban setting in 2017, a significant decrease from the 21 percent who did the same in 2015. As the numbers decrease annually, expect a lasting trend that will continue for the next decades.
More First-Time Homebuyers
In the last decade or so, there has been an increase in first-time buyers in the real estate market. This trend is mainly caused by the number of millennials going on the market for a new home. A significant proportion of the millennial population is considering purchasing a home within the next 12 months.
Of these first-time homebuyers, 61 percent of them are 35 years old and younger, meaning that a vast majority of potential buyers will be millennials. At the same time, take note that the numbers of housing units around the country are expected to increase. However, this increased inventory will mostly be in the middle and higher price tiers, which translates to less competition among potential buyers.
The millennial generation is probably the most environmentally conscious demographic ever, and this attitude spills over to their home purchase decision. Millennials want to go green as they buy property, something that’s made easier in today’s real estate world. Such buyers are tech savvy, an indicator that they have an idea of energy-saving strategies they can implement.
Since these millennial buyers are more interested in entry- and mid-priced housing units, home sellers need to outfit homes with energy-efficient appliances to appeal to this segment. Even with higher-priced units, the millennials may purchase them as long as they are fitted with energy-efficient washers, dryers, refrigerators, and air conditioners like those at Arlington Apartments. Environmental conscious millennials are better equipped to save on monthly energy bills, which help the environment.
Millennials are making use of the latest technology to look for and purchase homes – more than any other generation. Technology is continuously evolving and has a prevalent presence in the real estate world, just like any other sectors.
Today, thousands of real estate apps for mobile devices allow prospective millennial homeowners to carry out their own research. In fact, they can search the entire MLS, which offers them the ability to understand the local real estate market even before they have started the purchasing process. Further, millennials are using social media to find the right home, making an online presence critical.
If you are considering placing your property on the market, it’s critical that you ensure that your home has a presence online. In addition, you need to work with a real estate firm that offers you with excellent service and will take care of all your buying and selling requirements.