The millennial generation has been portrayed by the media in a bad light. They have been called “sensitive” and “woke”– both of which are not compliments when used alongside the generation’s title.
In a survey 10 years ago, they claimed that: they will never marry; they will never live in the suburbs; they have no intention of starting a family. For these reasons, Millennials have also been called flighty, disregarding the claim’s relevance to the economic state of the country. Yet all these have changed for those belonging in the first decade (the 1980’s) of the Millennial generation.
According to Student Loan Hero, Millennials who are purchasing their first home are ought to pay 39% more than baby boomers, in addition to the increasing cost of living and staggering student loans. The members of this generation, born from 1981 to 1996, account for more than one-third of all home purchases. According to the National Association of Realtors, the older ones, born between 1981-1989, brought about 26% of home purchases.
By looking at the trend of these purchases, there is a series of criteria that millennials look for in choosing a home. Here is a list of what realtors, homebuilders, and architects should take note of:
1. The structure’s sustainability
Millennials are socially-conscious, as opposed to the notion that this generation is apathetic on social issues.
Because of this, this generation prefers sustainable homes. For realtors, it is not unlikely to be asked about the materials used in the construction, the flow of water from the industrial meter, or the option to have solar panels. Millennials are mindful of their use of the earth’s resources. Architects and homebuilders are challenged to create energy-efficient homes without the extra zero on the check.
In contrast to thelarge homes preferred by the Baby Boomers, Millennials are not looking for huge homes with ornate interior design. This generation is opting for small yet quality homes with clean design and open floor plan.
2. The suburban neighborhood
For practicality, Millennials are choosing to live in the suburbs as the real estate in the suburbs offer more affordable pricing than the real estate in the city. In addition, they want to avoid the long commutes for economic and environmental reasons. They are also looking for peace and quiet that can’t be found in a bustling city… and the presence of a neighborhood coffee shop or specialty grocery store. Seriously, both can increase the listing price for 17%.
According to William Frey, a demographer at the Brookings Institution, Millennials prefer to find a home within the Sun Belt region where there is a promise of good job options and nice weather. The sudden increase of population, he said, is creating an overcrowding problem that leads to overpopulated schools and traffic jams.
3. The price vis-a-vis the quality
Millennials will not be buying a home that needs an overhaul. Renovating is the least of their worries. They do not have the time or the budget for large-scale repairs and maintenance cost. As a matter of fact, this generation prefers to wait a little longer and save money more money in order to purchase a newly-built home that needs no renovation.
The rest of the Millennial generation is growing older. Soon enough, they will be reaching another milestone and start purchasing their own homes. Since the Millennials have set up a different trend in the housing market, knowing this will surely increase your sales and customer satisfaction.