Millennials (generation Y) were slow to enter the real estate market, but now that they have entered it, it seems that nothing will be the same. They endorse distinctive purchasing and renting habits and have a different mindset than their parents.
What is more, their spending power is considerable, and the need to acquire a new, sensational lifestyle is insatiable. Hence, they are expected to shape the real estate market trends and spark even more attention in property circles.
Thus, home sellers, property owners, real estate agents and others prospecting in this market must make an effort to stay on top of the wants and needs of this dynamic group. There is no better way to ensure opulent dividends and ensure that the property does not collect dust and amass expenses.
At the summit of success
For millennials, owning a property is a top priority, and a measure of success in life. Yet, affordability is one of the prime concerns: Some millennials have managed to leapfrog into investment property ownership, scoping out the market vigilantly, while others are not so lucky. Still, both groups aspire to obtain financial freedom and thus fulfill their dream.
Now, the 67% of generation Y members are first-time home buyers, who are seeking lifelong support in their longings to possess a home. The problem is that they are often reluctant to pay good money, as the majority of millennials have gone through the frugal renting period in life. In such a situation, a short-term rental could do the trick of gradually persuading them that the specific property is nothing short of a perfect buying choice.
A matter of lifestyle
The basic logic behind buying a new home is a reflection of the urge to own one, free of parent’s supervision, household distractions, annoying flatmates, etc. Millennials do not want to move around freely forever, and crave to eventually settle in. As a result, they are on the constant quest to secure the express lifestyle, and make a positive change in life (through home ownership).
This has several implications for agents, property owners, and property sellers. First of all, abodes that do not allow millennials to inject their personality and style into space will fly under their radar. They are keeping their eyes open for places that will serve as a rewarding stage for renovating endeavors, ones that can be later sold for profit.
For a price
As we have pointed out, the price tag is always pertinent. Many younger buyers and renters are burdened by loans, experience difficulties in snatching a mortgage, and are plagued by obstacles like down payments and low credit scores. The ratio of median prices and average salaries is something that raises many eyebrows and pushes millennials towards lease.
Furthermore, they do not shy away from purchasing previously-owned property, which is seen as a way to mitigate the impact on the budget. Now, although the new living environment can be as old as the hills (and ideally reasonably priced), there is a thin red line: Its interior must not be outdated and unfit for the high-tech age of today – and this counts for both homes for sale and rental properties.
And for style
When talking about millennials, stylish studios for rent are in high demand, and it’s not hard to see why. Besides being one of the most affordable options, they also usually come fully furnished and functional. Plus, many of them include an all-inclusive rent, which makes them even more appealing to millennials. Moreover, they are usually smaller but well-designed, which again makes them both affordable (in terms of bills) and visually appealing. Some of them even come with a nice balcony. In short, it’s simply the most inexpensive way for millennials who prefer living alone to have everything they need for a comfortable life.
A young mind tends to take a holistic approach to living. Namely, the neighbourhood plays a crucial role in their decision making process. To be more precise, millennials are more partial to places near their jobs and ones that involve lower commuting costs.
Interestingly enough, they also prefer to stay within 10 miles of their previous residence. To some extent, these factors may even overshadow things like cost and condition of the house or apartment. As for the place itself, the Gen-Y is intrigued by contemporary design, sleek interiors, functional outline, and aura of authenticity.
The essentials list
In concrete terms, there are some must-haves no agent should dare to overlook. Younger, budget-conscious buyers and renters will pay attention to the kitchen and bathroom, giving preference to rooms that have been upgraded with water-saving fixtures. When it comes to the kitchen, the bigger the better, with an open floor plan stealing the show. Also, note that a substantial portion of millennials works at home, making home offices a desirable asset.
One thing they steer clear off is an interior with high maintenance requirements, which means they prefer wood floors over carpet, and adore granite countertops, as they are associated with both the visual appeal and low-upkeep. Energy efficiency is another key aspect for millennials, who are dreaded by clunky, energy-wasting appliances, shabby HVAC systems and poor insulation.
Tech-savvy as they are, millennials still want agents to explain them market trends, and guide them through the labyrinth of negations. When hiring a professional, they mostly rely on referrals from friends and family, and are not keen on weighing multiple options. That being said, they are no strangers to conducting extensive research in order to access the reputation of the real estate agent.
Therefore, those seeking to procure millennial clients must maintain an updated, appealing website with content such as customer reviews and recommendations. Valuing transparency, human touch, and honesty above all else, millennials will not put up with shady and rigid agents.
Go with the flow
Under the influence of aforementioned trends, the commercial real estate landscape is shifting. Millennials feel like at home when utilizing online listing and mobile apps, and are fond of email and text message communication. On average, they spend three hours per day on social media, and are 247% more likely to be influenced by blog and social posts than their predecessors.
Time-saving features and ease of access to information is in the spotlight, and rightfully so. On-demand scheduling via apps and online property tours will grow in importance and pave the path to the future of the industry. One thing is for certain: Making a nice first impression and maintaining the loyalty over a longer period of time is the best way for property investors to prosper in the busy market of today.
Jump at the opportunity
Being the largest segment of the buyer and renter population in many parts of the world, millennials are a potent force in the market, one that must be reckoned with. Agents must do everything within their power to maximize the appeal and effectiveness of property and infuse it with futures millennials in the market for.
So, stay up to date with the latest tech marvels, and make sure your business is social-proof and future-ready. By accomplishing this, entrepreneurs can build a long-term trust and move up the career ladder. The profound change in the industry workflow is taking place, and all those who are involved cannot afford failure when jumping on the millennial bandwagon.