What Millennials Look for in a Home
By Beni Restea
Compared to older generations, millennials are in a unique position when it comes to real estate. While those from the silent generation and the baby boomers were able to feasibly buy homes, millennials face a plethora of overwhelming challenges and roadblocks that make it far more difficult for them to purchase property.
These roadblocks vary widely, but the primary and most intimidating among them is the median home price. With a median home price well above the national average yearly salary, millennials who would like to buy a home are forced to take out a tremendously disadvantageous home loan or save up for decades.
Of course, there are ways in which a millennial home buyer can circumvent the high median home price and other obstacles that stand between them and buying a home. While the median home price is quite high, there are real estate agents who specialize in finding more affordable homes for millennials. Additionally, millennials in this situation can also find lower priced housing markets.
Keeping these limitations in mind, you may be wondering what millennials look for in a home. With a long list of obstacles in place, what are millennials not willing to sacrifice? That's what we're here to find out today: what millennials look for in a home, and what they're willing to do without. Let's get started!
Millennial home buyers: a unique market
To better understand the millennial homebuyer, you've got to first understand their position. As likely as not, they're between the ages 25 and 40 years old. On average, they'll be making around $50,000 a year, and much of that will be going toward their expenses such as auto maintenance, food, health insurance, and rent.
For an individual in this position, buying a home is a daunting undertaking.
It isn't as simple as saving up for a year or two, signing a ten year mortgage, and moving in. It will require them to plan, save, and readjust their financial life in its entirety to gain a mere hope of being able to purchase a home. While this may not be the case for all millennials, it certainly applies to most of them.
What millennials want in a home
This brings us to our current order of business: ascertaining what millennials want in a home. When compared to older generations, millennials tend to prioritize certain aspects of a home that their more elderly counterparts would typically not prioritize, but certain things remain the same across each generation. Ultimately, millennial home expectations center on the same thing that those of previous generations did: comfort. So, what makes millennials comfortable?
A low price
Many millennials are financially challenged, one of the biggest draws a listing can have is a good price. While there are certainly a lot of things that millennials will be looking for in a home, it first and foremost must be attainable financially. It doesn't matter how nice the house is if they can't afford it!
As a general rule of thumb, you'll have much better luck selling homes to millennials if your listings are priced 20%-30% below the median local home price. For these homebuyers, price will likely be the primary consideration when it comes to choosing a place to live, so keep this in mind when coming up with your marketing pitch.
Open space
One thing millennials seem to love is large amounts of open space. While previous generations often prioritize finding homes with more practical characteristics, millennials love homes with a lot of space. Generally speaking, millennials prefer homes where this open space contributes to a general feeling of freedom and connectedness, as opposed to those that feel confined and restrictive.
If you want to sell to millennials specifically, you should favour studio apartments, open plan homes and any other type of listing that features a great deal of open area. As an added bonus, look for homes that have color schemes which highlight the open space present in the home and give the impression of an even more expansive floor plan.
Access to public transportation
Another thing that millennials love when it comes to homes (especially those within the city limits) is easy access to public transportation. Millennials are the generation least likely to drive cars, and with this limitation, access to public transportation is an appealing bonus when paired with an attractive home.
If the listings you're selling are in a larger city, there's a good chance that they'll be served by light rail, bus, and subway networks.
One thing to keep in mind, nonetheless, is that no one likes the thunderous sound of a train rattling by, so try to choose listings that are within walking distance of a bus, train, or subway station, but out of earshot of these services.
Close proximity to nightlife attractions
Although the older millennials are getting a bit long in the tooth, there's no question that the millennial generation is the party generation. Whether they're tearing it up on the dance floor or going shot for shot with the local bar heavyweight, millennials just like to have fun. And as any alcohol enthusiast worth his salt knows, the best house is the one next door to the bar!
While this may be a bit of an exaggeration, what isn't an exaggeration is that local nightlife attractions are a compelling selling point in millennial real estate. If there are any bars, clubs, lounges, or other similar attractions, be sure to give potential buyers a heads up regarding this fact. You're sure to see results!
Conclusion
While their demands may differ substantially from their older counterparts, millennials still have prerequisites when it comes to purchasing a place to live, and you'll have a lot more success if you market your listings with these things in mind.
If you're looking for some advice from someone with more experience, why not find a real estate agent who specializes in selling to millennials? These skilled, professional realtors are your best bet at getting keen, useful insights into the world of millennial real estate. With their help, you'll be wheeling and dealing in no time!
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