It’s no secret that millennial are revolutionizing the real estate market. It can be a challenge to figure out how to appeal to this group of home buyers, who are just starting to settle down. Their motivations, financial situations, needs, desires and ambitions differ from preceding generations. In order for real estate agents and firms to capture their interest, they must understand what young people are looking for in their journey to home ownership.
Defining a Millennial Home buyer
Generation Y — more commonly referred to as “millennial” — is defined as the generation after the Baby Boomers and Generation X and made up of those born approximately between 1980 and 2000. There are a number of general and definable traits about this demographic that may play a role in their home buying decisions.
For instance, millennial tend to be nostalgic, particularly for the 80’s and 90’s. However, they are more likely to embrace modern trends, technologies and lifestyles, especially when it comes to purchasing a house. Since this group makes up about 35% of the home buyer market, it is increasingly imperative for sellers in the real estate space to know how to appeal to them.
Marketing a Home Begins Online
It’s important to understand the best ways to engage with the younger generation of home buyers. This means technology, digital real estate marketplaces and social media are large parts of the process. Millennial will often begin their search online and do plenty of research about neighborhoods before setting foot in a house. This makes photos and video tours an essential first step in introducing potential buyers to a property and its key selling points.
Due to their limited budgets, millennial are looking for move-in ready spaces that require little to no extra work. Immediate usability is attractive primarily because it is faster and more affordable to maintain on the front end, which is why they tend to prefer new homes to older, pre-owned ones.
Older houses are often associated with substantial renovations, whether it’s cosmetic upgrades because of an outdated style or fixing a problem that the previous owners repaired incorrectly. However, young buyers place a strong emphasis on affordability, so these homes are not necessarily off the table, especially if the property fits their lifestyle and budget.
The Ideal Home
The function of a space is valuable to a home buyer of any age. However, millennial tend to have their own preferences regarding the layout of a home. One of the most noticeable differences in current real estate trends is that a separate dining room is not a necessity. Instead, most young people prioritize a large kitchen with eat-in features and a “social flow” that blends into the family room area. Another crucial feature to consider is a large master bedroom that includes all the desirable amenities of a suite, such as a master bath and large walk-in closet.
A home office is also key to appealing to millennial buyers. Remote jobs and a work-from-home work style are becoming more and more popular every year, which makes a dedicated office space or small extra bedroom highly desirable. Lastly, smart technology is an increasingly popular amenity. This could include built-in speaker systems or smart home thermostats and outlets.