Millennials (ages 20 – 35) are the largest age group and poised to outnumber Baby Boomers in the near future per the Pew Research Center. This means a large number of first-time buyers will be Millennials. However, they will be competing with Baby Boomers (ages 52 – 70). This demographic will be downsizing, while Millennials are looking for smaller home sizes. Current mortgage rates are just over 4%, which is a big incentive for a new home purchase. Below are the top real estate trends for Millennials buying homes.
- Technology — With the advances in home technology, many will want a home with the latest tech. This includes having a security system, a programmable thermostat, an upgraded network system, a lighting system and pre-wiring for a home theater system. The home should also have multiple outlets for plugging in devices.
- Sweat Equity — Thanks to home improvement shows such as HGTV’s Property Brothers, Millennials are willing to renovate. They are aware of the renovations costs and have access to cheaper and unique materials via social media and the Internet.
- Open Floor Plan — Although new homes have this feature, it is a must for Millennials. They like to entertain and a large kitchen area allows for it while keeping an eye on the kids in the family room. It is also easier to heat and cool.
- Low Maintenance — Millennials have active lifestyles, which doesn’t leave a lot of time for yard or surface maintenance. They would prefer to have a smaller lot or belong to a home-owners association (HOA) that takes care of the lawn and trim work.
- Research Savvy — There a number of real estate websites that provide the information Millennials need to help them determine a location, style of home, budget, school system and more. They have access to home buying videos, industry information, and listings. Also, apps provide notifications on when a home goes on the market or when there is a price change.
- Location — This is still the number one reason for buying a home. Many millennials work from home, but there are those who do have a commute. They want a short commute as well as be close to shopping, schools, restaurants, and parks. The ideal location is a walkable neighborhood without heavy traffic and plenty of green space.