Making Sense of the Millennial Housing Market

The Millennials are moving into the neighborhood. They currently account for a large portion (37%) of buyers on the market — a major shift in the homebuying demographic. And yet, it makes sense: more Baby Boomers (born between 1946 and 1964) are retiring and downsizing while Millennials (1981 – 1996) are getting older, enjoying stable careers and looking to invest. Their typical household income has increased to $101,200, which gives them the means to buy their first homes in middle- and upper-middle-class neighborhoods.

Sellers: What Millennials
Really Want in a Home

Knowing your buyer is important — especially when it comes to Millennials. They’re internet savvy and do their research before house shopping. If your goal is to catch their eye and sell your home, it’s best to know what they’re looking for:

Easy online searching

Since 81% of older Millennials found their home via an app, it’s imperative to make the best impression possible when marketing your house online. Be sure you invest in high quality photos and 360° video tours. For extra measure, you can even consider using a drone to take aerial video footage.

Efficient space

Millennials are all about sustainable spaces with a variety of uses. Clear out as much as possible, especially personal things like family pictures and heirlooms. Give them a clean slate so they can visualize their own bright future in your home.

Location

A lot of Millennials are looking to live the big city life but still want an affordable cost of living. If your home is in a walkable area with access to public transit, expect Millennials to come knocking at your door.

High-tech lifestyle

Millennials are used to living in the age of high-tech advances and Amazon Prime. Smart home products like video doorbells and connected systems are quickly becoming requirements, not just value adds.

Sustainable design

Going green could mean a higher return when selling your home. Many Millennials are interested in the use of green building materials and are looking for energy-efficient homes with appliances to match. They desire smart thermostats and refrigerators, and energy-efficient washers and dryers. If your home doesn’t have at least a few of these, your buyer may look elsewhere or lower their offer.

Buyers: When Everyone’s
in the Market for the Same Thing

If you’re looking for an eco-friendly, three-bedroom, single-family home in the suburbs (that’s still not too far from the city), you can expect a lot of competition — especially from other like-minded Millennial buyers. You may have to reprioritize what constitutes your absolute dream home, which can be simpler than you think if you follow these tips:

Know what you want

Decide what you absolutely need in a home by mapping out “wants” versus “needs.” This will make the final decision much easier.

Hire an experienced pro

Last year, 87% of Millennial homebuyers used real estate agents to purchase their homes. Think they’re on to something? Likely so! The right realtor can make the homebuying process much smoother for everyone involved.

Keep an open mind

Don’t be intimidated if you don’t immediately find properties with everything you want. Go back to your list of “wants” and “needs” and weigh them carefully. You’re probably getting more than you think.

Make room for renovation

If you find a great home that checks the boxes but still needs some renovation, talk to your realtor. It may impact the amount you offer. Plus, even simple renovations like installing a steel entry door, replacing faucets or adding more kitchen storage can offer high returns on investment when it’s your turn to sell.

Beat the competition

Sending a personal letter to your seller might be just the thing that makes you stand out from similar offers. Include what you love about the house and why. For example, if there’s a deck or screened-in porch, share how you envision using and enjoying the space.

Although the housing market is changing, the reason for buying a home stays the same — finding a place that you can call your own. Maybe Millennials have the right idea; innovative technologies and sustainable materials are just a few of the new standards when it comes to homebuying.

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