4 Things Millennials Are Looking For In a Home
This post is featured on behalf of Jenna Brown.
The latest surveys of the housing market show that Millennials are poised to become the biggest buying demographic in the coming year. The majority of sales this year will go to first-time homeowners and the majority of those buyers will be Millennials, or people under age 35.
If you are a seller in one of these markets, it is even more important that you understand how to position your home in the best light to get top dollar for it. By understanding the trends that are shaping Millennial buying decisions you can showcase the right attributes of your home to make a great sale.
Here are some of the trends we’re seeing in Millennials when buying homes:
1. Green Homes
Many Millennials are aware of the climate debate, and they are interested in finding ways to do their part to conserve natural resources. Many are embracing cleaner automotive technology like hybrid and electric vehicles and many are interested in “green” homes.
Green homes are designed to conserve energy, water, and gas so they have a lesser impact on the environment. They are made with things like insulation with a higher R-value, double-hung windows, a more efficient central heating and air system, and recycled roofing materials. They can also feature low-flow toilets and other appliances, and they can have materials, like bamboo flooring, that are easily renewable. They may even have solar panels for producing energy.
Homes that have even some of these features will be more attractive to Millennial buyers. Homes that have many of these features will sell very quickly.
2. Tiny Homes
A lot of Millennials have expressed a desire in homes that do not require a lot of maintenance, such as town homes in communities that have an HOA. In addition, many are embracing “life hacking” philosophies that free them from the need to work long and grueling hours to support their lifestyle. One way they are doing that is to live in tiny homes, which can be anywhere from 200 to 800 square feet.
Typically, these homes are specially built. However, now that tiny homes have become more popular, we are seeing a resale market for them. Some are built on a piece of property, and some are built to load on a trailer, so they can be mobile.
3. Family Friendly Homes
The top reasons that most Millennials look to buy a home is that they either don’t like the space they are in or they are making a life change like getting married, moving in together, or having a child. Therefore, a lot of Millennials look for homes that will accommodate the family they expect to have very soon or one they are thinking of having in the future.
Family friendly homes include those in safe neighborhoods, in zones for good schools, and in the suburbs. Homes that have some privacy are also desirable, including those with fenced-in yards, trees around the perimeter, or even set back from the road. Many prefer homes that have a large yard so that they get some privacy by not being right on top of their neighbors.
4. Investment Properties
Another way that Millennials are freeing themselves from demanding jobs is by creating passive income with investment properties. They find homes that they can buy and then rent out to generate a bit of income now and a lot of income later when the house is paid off. Some are also motivated by the home-renovation programs they see on TV, and they try to flip houses by fixing them up and reselling them.
Millennials will look for investment homes that may need repairs but that are in desirable locations, such as safe neighborhoods, communities that are up-and-coming thanks to development, or neighborhoods in good school zones. They will also look for homes that will be attractive to other families, such as homes with several bedrooms or fenced-in yards. Competitive pricing is key here since these buyers will be looking to save as much as possible to make the investment worthwhile.
Millennials have different needs and preferences than older homeowners and it is important to understand these needs if you want to sell your home for the best price in this competitive market. If you are a Millennial looking to buy a home, it is important that you understand the trends so that you know where you are likely to encounter the most competition.