Born between 1980 and 2000, millennials are said to be a group driven by the technology revolution and fed by avocado toast. Certain characteristics and behaviors have influenced society’s overall perspective of this generation, such as the increase in single-parent families, the higher likelihood of college enrollment — and student loan debt — and various observations on their work ethic.
However, one place millennials are rapidly increasing their presence is within the housing market. Members of Generation Y are ready to invest in real estate, making up 35% of the homebuyer community. As traditional family structures are evolving, so are the demographics of those interested in purchasing a house, progressively made up of unmarried couples, single women and nonfamily roommates. With this diverse population, how can you be sure to attract a buyer? Read on to learn about what millennials want in a home.
Before They Buy
Loans and consumer debt can influence a young person’s decision to officially take on mortgage payments. This makes the cost of acquiring and maintaining a house of particular concern for millennial buyers. However, one of the biggest economic challenges for Gen Yers is not necessarily the mortgage itself, but rather paying off other accumulated bills. Over 44 million Americans are repaying a national student loan debt of $1.48 trillion. With many young homebuyers facing these unprecedented financial burdens, they’re looking for any way to mitigate long-term spending, including convenient locations, energy-efficient appliances, and new construction to prevent future upkeep expenses.
What Do They Want?
Before they even attend an open house, it’s likely that millennials will use the Internet to their advantage and research the location online. Growing up with more technology than their predecessors, millennials can be extremely savvy. With such easy access to information, Gen Yers value authenticity, transparency, budgeting and the environment. So, when it comes to purchasing a home, these concerns and amenities are deemed “must-haves.”
Sustainability is a growing priority that informs Generation Y spending habits. As one of the most educated populations, they prefer more green features in the house. Additionally, since so much of daily life is posted on social media, an aesthetically pleasing design and layout, complete with numerous electronic outlets, is a great way to win over young homebuyers.
There are additional factors that millennials are less likely to abandon than their parents and grandparents, including pet regulations and having to make immediate repairs. Since most Gen Yers understand the importance of affordability, a value that stems from years of the penny-saver college lifestyle and competitive job market salaries, they appreciate convenience and frugality. They also view homebuying as a rite of passage since it is associated with success and independence.
Because millennials are so influential to the housing market, it is imperative that sellers adapt to the increasing demand. Understanding what is important to Gen Yers will help the process for both parties. Learn more from the accompanying infographic and be prepared with our tips on how to appeal to millennial homebuyers.
Eric Krattenstein’s extensive marketing experience began at a boutique marketing agency where he developed dozens of successful innovative marketing strategies for brands ranging from startups to Fortune 500s. Prior to joining Asset Based Lending in 2016, Krattenstein served as U.S. Chief Marketing Officer for a European enterprise software company where he spearheaded the company’s expansion into the United States and Canadian markets. In his current role as Chief Marketing Officer, Krattenstein leads Asset Based Lending’s Sales and Marketing team that helps upward of 40 to 50 real estate investors close hard money loans each month.