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Staying Informed
It should not be a surprise that millennials are changing real estate markets because many are very methodical and research-driven when it comes to buying a home. It is also extraordinary how their behavior influences today’s real estate markets, causing quite the generational shift. According to the National Association of Realtors (NAR), those 36 and younger make up the largest percentage of buyers (34%) in the United States.
Other generations can only envy millennials for being informed and well-aware of what they want. Many would say that it is because they grew up during the boom of Internet technologies, but it is actually due to their knowledge of how to use these technological improvements in everyday life that they are so savvy about almost every aspect of their lives.
Changing the Market
Here are several key ways millennials are changing real estate markets around the country.
- Millennials Know What They Want From Their Future Home
While local economies are steadily improving, options to help with adaptation and renovation of a new home can still be tricky, especially for many who are recently out of college and have student debt. Many millennials overcome this by looking for ready to buy houses, namely with updated and functional kitchens and bathrooms. Homes with open floor plans, home offices, and technology upgrades are also sought after.
- Location Is A Matter Of Convenience, Not Stature
Millennials will choose smaller homes if that means they will live closer to urban areas and places of work and study. Many of them are content working at home, and they like to spend their free time in recreation, so nature and open spaces need to be close and convenient. They also try to reduce the carbon footprint, and many are cycling and walking whenever they can, so it is important for them that their new place accommodates to that.
- They Want Technologically Advanced Neighborhoods
Having an Internet connection is not unusual today, but millennials take it further by requiring the best signal and conditions. They want homes with the latest technology in absolutely everything they can afford, inside and out. Starting from interior smart appliances with built- in Wi-Fi from refrigerators, TVs, washing machines to easily controllable heating, and cooling with one swipe of their fingers.
- Sellers Want To Sell To Millennials
Research shows that of all first time buyers, over 60% of them are millennials. Add in that they account for a third of overall home purchases, and they are a buying force that sellers need to understand and adapt to. That is a big reason why today’s market is trying to meet their extensive requirements.
- They Include Their Parents In The Process
The most peculiar behavior on the real estate market today is that many local real estate agents are both fascinated and sometimes confused with the buying process when dealing with millennials. Namely, millennials are the ones with wishes, requirements and information, but when it comes to closing the deal some sellers have to do business with their parents.
- Millennials Look For Affordable And Modern At The Same Time
Studies show that millennials state as an absolute must for their new homes to come with completely functional and modern kitchens (the assumption is they like to both entertain and cook). In many instances, they will bypass a larger bedroom in lieu of more space in areas they will utilize more often during waking hours.They prefer hardwood floors to rugs, like pet conveniences, and love open spaces so they can entertain guests. The bathroom is also important to them, especially if it has been upgraded. For many millennials, their idea of a perfect home is to be affordable and modern at the same time, even if that means buying a smaller home.
- They Do Their Research Online
Before advertising the property, make sure that everything you publish online is true and accurate. This should always be done as a matter of principle, but it is especially important because millennials will have done their research and will spot something that is incorrect or dishonest.
Final Thoughts on Millennial Buyers
Every generation has its perks and characteristics, and markets must keep up with the evolving tastes and needs of their consumers to thrive. Millennials are the current trendsetters when it comes to a big portion of consumer goods, and that includes big purchases like real estate.
They are smart and savvy which means homeowners and agents must adapt their approach and style to keep up. In the end, sellers will have a better product (a well maintained and updated home) to show which is great for market growth. With the iGeneration (Z’s) next on the real estate horizon, we all must continue to evolve, or run the risk of getting left behind.
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