Surprisingly, Millennials have a bigger impact on the housing market that you can even imagine. After Baby Boomers, they are considered as the most varied and the largest generation. Despite the financial struggles they are facing, like student loans and deteriorating wages, they are working hard to save up for the down payments to buy houses.
However, while comparing them to the previous generations, there are some major differences in what they are looking for when they want to buy a house.
Millennials Want To Own Homes
Previous generations had the American dream, but today the Millennials have a dream of having their personal space that is having their own home. This is in a huge disparity of what people generally think of them.
Often, Millennials thought that they’ll be living in the parents’ house, renting for eternity, or getting a share of everything without even asking, giving, or even buying.
The key difference between other generations and Millennials is that they don’t consider home ownership as permanent. They don’t want their life to be stagnant and they plan in moving sooner than later.
Millennials Shop for Homes in a Different Way
As we can see the internet has changed things for millions of people. Digitally addicted Millennials are more comfortable with using the internet as compared to the earlier generations. There are many platforms that the Millennials use to get information on their dream houses: social media, applications, or general real estate software. It takes a keen eye to identify and locate which kind of home they would like. They search through various websites where you can find different types of houses. Find out more here about such websites to give you a feel of what the millennials prefer.
Most millennials own smartphones through which they browse the internet on to find the things they want. The amount of time that the millennials spend on the internet accounts for more than 4hrs of phone use a day. These are the people who purchase groceries from the internet and even research for a piece of clothing comprehensively before committing to purchase it. And when it comes taking major decisions like buying a house, how can we expect them not to, they use the same diligence in purchasing the home also.
Generally, three-quarters of the Millennials will drive to a house after being interested in images online, whereas two-thirds of them will walk through after they find the house on the internet. Having high quality of images with the proper listing of a house are the biggest obstacles to get them through the doors.
Millennials Are Broke
With the pile of student loan debt and reducing wages, a number of Millennials say that saving for a down payment is the hardest part of their home buying process. The stats might astound you but almost half of Millennials owe at least $25,000 in student debt.
Saving is a difficult road, and saving for a down payments is one of the hardest roads for many Millennials and their everyday struggles reflect how badly they want the home with many taking multiple jobs to help speed up the savings process.
While there are “fixer uppers” which would be more in Millennials price range they often don’t have enough extra cash or sufficient time to fix up a house, they want ready-to-move-in homes so that they can save their time and energy on construction.
What Millennials Want
As we all have our eyes for the best, same way house is the best place one can own, so these Millennials have an extended list of demands when it comes to buying their own house. They don’t have extra or enough cash to spend in making it their own, so they want everything to be right before the sign the contract.
The things most of the Millennials definitely want are:
- As they are broke, they want an open floor plan, so they can have their own source and space for entertainment.
- Some of them love to cook, and others can’t afford the expenses to eat outside, so they look for an updated luxury kitchen to prepare their own morning toast and coffee for the foreseeable future.
- They don’t have enough money to conduct renovations, so they want already updated bathrooms to avoid chaos.
- Most of them have a side-hustle income to manage their mortgage loans debt, student loans debt, and other expenses, so they are telecommuting from home also, and they want a dedicated space for their home office.
- Most of them want everything to be accessible – they want to stay close to work, suburbs, entertainment, and lot more.
- As their obsession with the internet is never understated, they want quick technology access and access to high-speed internet.
Millennials Are Controlling the Real Estate Landscape
Today, Millennials are ruling. Currently, they make up 34% of all the house buyers and 66% of the first-time house buyers. Because of these numbers, they are changing the entire perspective of the real estate industry from the level of houses they sell to the professional involvement in the whole process. If you are one of the persons working in the real estate market or want to sell your house, you need to consider this as an important factor.
Discounting the Millennials buying power because of the constant rumor the media is creating and labeling them as “broke and in debt” or “sharers, not owners” is going to be a destructive strategy. Millennials want to own homes, they want to have independent lives, so they will do it by any means possible.