What Do Millennials Want?
Generation Y is the largest cohort in history. It is defined as a group that was born between 1981 and 1996 and is approximately 90 million members strong and makes up 38% of the home buying public as of July 2019. They will soon outnumber Baby Boomers. Despite their high levels of student debt and the battering they took in the financial crisis, millennials want to be home owners and see home ownership as more affordable than renting especially now that interest rates are so low and will likely remain low for quite some time. They have waited longer to own a home than previous generations.This is a picky group that is very tech savvy, highly educated, value social connectivity and are socially conscious. These characteristics are apparent in how they view homes and the process of home ownership which is vastly different than previous generations.
What are they looking for in a home and the home buying process? While a previous generation may have seen a home as a status symbol, this generation is looking for sustainable design, low maintenance, comfort and community connection. How do you position your home to appeal to millenials?
Sustainable Design
Sustainability is at the forefront of their decision making. They will choose homes that are energy efficient and have green building elements and materials though they balance this with a high degree of budget consciousness. Smart home features and technologies such as Nest and Ring are practically requirements. They are willing to buy smaller, older homes with proximity to work and conveniences over large, grandiose homes although during SIP, room for home offices are essential.
Low Maintenance
The busy Y Generation is not interested in fixer uppers and budgeting for significant repairs, maintenance or renovation. They want to walk into a home and see that the home is “done’ or mostly done and that they can move right in. The styles they prefer are light, bright and have minimalist design and sleek, discreet appliances. Homes with crown molding, ornate details and Mediterranean or Tuscan style architecture can be a hard sell. Homes with clean lines and open floor plans get snapped up. 50 shades of grey or white paint is what they want to see and buy in a home.
Feel the feels
What makes a millennial feel comfortable in a home varies from buyer to buyer but feeling like they have received value for their money is high on the list. A millennial is probably paying 39% or more than a baby boomer did for their first home. They want durable, high quality materials and don’t want cookie cutter finishes. They want homes that feel personalized and have a handmade DIY feel.
Community Connection (post Covid)
Millennials don’t just want virtual social connections once. They want real community connection too. That can look like being able to walk to the town square for coffee and meet ups and be close to a park or trail for an outdoor gathering. They want to know their neighbors and know there is robust community participation. Strong schools, sports clubs, libraries and civic organizations are all important parts of the equation. Does the community they are considering align with their values?
The Decision Process
Technology is a big part of the initial home buying process. 94% of millennial buyers look at a home online first and how the home photographs and looks is the difference between whether the buyer will actually make an appointment to go see the home or not. High quality photographs and videos are crucial. Millennials do their research online first and do it on their mobile devices.
They Want What They Want
As this generation grows into adulting, Gen Y is transforming the housing market. So, whether it’s creating green design or smart home features, millennial’s tastes in homes cannot be ignored. Tailoring homes and the marketing of homes to meet their exacting needs just makes sense. Let me assist you in preparing your home for today's millennial buyer.