How Millennials Are Altering the Housing Market
Millennials are much more informed about their housing options than any other generation before them.
Everybody remembers buying their first home with their significant other. Specifically, that warm feeling of walking through the front door for the first time as homeowners. It truly is a defining moment in the lives of both parties.
Today, younger Millennials are purchasing their first homes and older ones are already moving on to their second or even third homes. Millennials are known as the generation that will buy jeans that cost $200 after putting in hours of research and trying on 58 different pairs the find the exact right ones for them. The way that this generation shops for homes are the exact same way.
The Internet supports this research-driven culture where everything that they could ever possibly want to know is right at their fingertips. The most surprising thing about the way that Millennials buy their homes is the way that they actually want a realtor to help guide them through the entire process, but that is not the only generational shift here.
Millennials want everything to be just right
Much like generations before them, Millennials consider owning their own home as a very important part of living the American Dream. Unfortunately for them, thanks to stagnating wages and a sharp increase in student loan debt, saving up for that down payment is not going to be an easy task. As a result of this, there isn’t much cash left over after closing to make any updates that Millennials want, so they instead seek out homes that are fully updated and move in ready.
At the top of the Millennials’ wish lists are updated kitchens and bathrooms, green fixtures such as solar panels, an open floor plan, a home office, a good location, an especially good internet and cell phone service. Approximately half of Millennials would prefer to purchase a brand new house in order to avoid any maintenance issues that might occur early on. Only 11% of Millennials consider a home to be permanent anyway.
Eventually, Millennials plan to sell their starter home as 68% view it as a stepping- stone to the home that they want and making improvements is actually not part of that plan. The typical homeowner keeps their home for ten years, while the typical Millennial only keeps their home for six years.
Some things stay the same regardless of generation
When it comes to where Millennials want to live, the suburbs are still the most desirable location. Half of Millennials want to live in the suburbs and a shockingly low 25% live in urban areas. Research shows that many Millennials want to live in an area that is both close to work and close to things to do, and urban areas usually provide both of those options.
Four out of five adults between the ages of 18 and 25 live outside the urban core of the city, which shows an even stronger shift toward wanting to live in the suburbs. Still, they want to be close to work to save time on their commute and travel expenses, and 65% choose their home based on how close it is to work.
Why sellers should cater to Millennial Homebuyers
Of all first-time homebuyers, Millennials make up a whopping 66%, and they are 34% of overall homebuyers. Over 65% plan on buying a home in the next five years as well. That is a massive generational shift in the real estate market. Millennials are better informed about their various housing options than any generation before them.
To keep it simple, if you aren’t catering toward this generation’s enormous buying potential then you’re going to be missing out on a lot of quality opportunities. If you are considering selling your home:
• Make all necessary repairs and upgrades before deciding to list.
• Consider updating kitchens and baths – these have always contributed to homes selling but will be more important now than ever.
• Do an energy efficiency audit and make upgrades where you can, including solar panels.
• Consider upgrading any old appliances.
• Install smart home features, such as a programmable thermostat.
Millennials do hours of online research, even for the most simple of purchases; so naturally, they are going to put a lot of effort into buying a home. More than three- quarters of Millennial homebuyers drove by a home based on pictures and listings that they found of homes online, and over 60% did walkthroughs because of these listings. In real life, we experience things spatially. Our brains are always calculating distances, sizes, and volumes to understand the world around us. Where standard videos of a home fall flat, 3D Matterport videos offer viewers more than just visuals – they provide the feeling of actually being in a physical location. Getting the right information in front of Millennial homebuyers is critical, and making sure that the right features are highlighted is key.
Millennials are rapidly changing the face of the real estate market. Gone are the days
of only seeing what your realtor wants to show you. Gone are the days of the glorified fixer-upper and weekend warrior home. New homes and homes that are already fixed up are going to dominate the market, an ode to the true buying power of the Millennial Generation.
When it comes to buying or selling a home, ensure that every unique and beautiful aspect of the home is shown off with services from us at Twist Tours. From gorgeous High Dynamic Range photography to 3D Virtual Matterport Tours that give your audience a true sense of presence to 2D/3D floor plans, every aspect of a home is sure to make the jaws of every Millennial drop. Why be ordinary when you can provide perspective buyers with TONS of information and multiple viewing options?
