Statistics show that millennials have an influential role in today’s real estate market- they are the largest demographic four years straight! In fact, 40% of all buyers are under the age of 36. With such strong representation, home sellers are taking note and finding out what millennials want:
Millennials see real estate as a smart investment. Most millennials have post-secondary education and entered the job market at a time of financial crisis. This turmoil swayed the young investor from putting their hard earned money into stocks, to a more stable and tangible asset – real estate. Gone are the days when the most attractive properties were the three bedroom bungalows with large yards and white picket fences. Now, the young buyer is looking for different real estate options, such as income properties and low maintenance living. It is not uncommon to see millennials with multiple income properties, as well.
Millennial buying has yet to reach its peak. Trends show that millennials are staying at home longer and waiting longer to start families. A good majority of millennials have yet to enter the market – but it will not be long. The strong growth in the labour market means that young people are finding it easier to find meaningful work and are more confident with stretching their budget for a home they desire. Many are foregoing the ‘starter home’ and looking for a property that will accommodate them as their families grow or change.
Millennials have different wants and needs. Every generation has a unique idea of what ‘the perfect home’ is. 1000 millennials were surveyed and asked to imagine themselves in the following situation: they own an average home (20+ years old, three bedrooms and two baths) and have a $300,000 budget for upgrades. They are given a list of 38 hypothetical upgrades and are asked to get as close to their ‘dream home’ as possible:
The results: 75 per cent chose new appliances, while only 3 per cent chose an above-ground pool. 64 per cent chose a large master bedroom, while only 9 per cent chose to add an extra two rooms. 54 per cent chose a two-car garage, while only 9 per cent chose an attached 3 car garage. 47 per cent chose solar panels, while only 11 per cent chose a long-lasting slate roof. 46 per cent chose a luxury kitchen, while only 12 per cent chose a luxury deck.
The survey found that some of the most popular upgrades were also the least-expensive ones. The millennials interviewed cared less about privacy, property size and exterior, and more about technology, finished basements and good neighbourhoods.
Millennials want to own and are motivated in finding a way to do so. Purchasing a home is more a part of the American (or, Canadian) dream than ever before. Whether they are looking for a sleek condo, an investment property, or a house in the suburbs – millennials are a driving force in today’s real estate market and they are here to stay.