Millennials and the housing market. Besides inflation and the woes of the condo industry, it seems that millennials have taken over the headlines in real estate news. The big question is WHY do we care about millennials and how they affect real estate? According to Inc.com, millennials currently make up 66% of the first-time home buyers and 34% of overall home buyers. These numbers are significant! It would behoove sellers and professionals in the real estate industry to understand and cater to the trends of the millennials as to not miss out on this vast amount of buying potential. As the most informed home buyers (since they use the internet more efficiently than any other generation), we have a lot to learn about their home buying demands as well as their regrets. Here are some tidbits that could impact how one would market to the millennial home buyer.
Expectations of the Average Millennial Home Buyer
- Professional online photos. According to Inc.com, 76% of millennial buyers will drive by a property after seeing photos online and over 60% will do a walk-thru after seeing professional online photos.
- Turn-key property. Most millennials are not looking to spend time and/or money into a fixer-upper. It is best, when able, to complete necessary upgrades (kitchen and bathrooms) and repairs prior to listing a home on the market. 46% of millennials state that they want a luxury kitchen and 75% expect to have new appliances according to Inc.com.
- Convenient commutes. 65% of millennials state that a close commute to work is the most important factor when buying a home.
- Energy Efficiency, Home Office, and New Technology. These items can also be factors when choosing between possible properties.
Trends of the Average Millennial Home Buyer
- Their first home is just a stepping stone. Only 11% of millennials feel that their first home is their permanent home. They tend to keep their first home for only 6 years compared to 10 years which is the overall buyer average.
- Suburbia living is IN. Nearly 50% of millennials live outside of the urban neighborhoods.
- More Denver millennials own a home compared to other cities. 2% in Denver vs. 32.1% in other cities.
- Purchasing homes below market average. “The average home a millennial is purchasing in Denver cost $291, 299, below the overall market average of $362, 542…”
Regrets of the Average Millennial Home Buyer
- Buying when the market was affordable. 4 in 10 millennial renters who haven’t bought a home regret not buying when the market was still at the bottom of the upswing.
- Size does matter. One in 10 millennials buying in urban neighborhoods have expressed that they wished they had purchased a larger home.
- Financial stability woes. About 17% regret not waiting until they were more financially secure before purchasing a home.
- Not enough remodeling. Despite the desire to purchase a move-in ready home, 24% wish they had done more extensive remodeling before moving into their new home.
Looking to Buy, Sell, Rent, or Invest in residential or commercial real estate? Call Your Neighborhood Realtors, TJC Real Estate & Management Services, Distinctive Properties and TJC Commercial, your full-service real estate team for the scoop on Denver real estate opportunities!
Brought to you by Sondra Lockett-Cameron, Marketing Coordinator for TJC Real Estate and Management Services.
Photos courtesy of Jack Ingle via StockSnap.io
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References:
Inc.com: https://www.inc.com/john-white/how-millennials-are-changing-the-housing-market.html
Denver Post article by Aldo Svaldi: http://www.denverpost.com/2017/06/28/denver-millenials-buying-property/
Denver Post article by Aldo Svaldi: http://www.denverpost.com/2017/07/13/millennials-carry-more-regrets-after-buying-a-home-survey-finds/