Defining the exact age range for millennials lacks a formal consensus, but generally, researchers and statisticians place the starting birth in the early 1980s and the ending birth around 2000. For the context of this article, if you’re 36 or younger, you fall into the millennial category, also known as Generation Y.
As of today, there are approximately 75.4 million millennials, making them the largest generational cohort in the country. Unsurprisingly, this demographic also constitutes the most significant portion of home buyers, contributing over $514 billion to the housing market last year.
As a Seller, Should You Cater to the Millennial Buyer?
Certainly! When you consider the broader perspective, it’s highly likely that individuals aged 18 to 36 will be the ones perusing your home listing, and chances are they’ll be doing it from their smartphones. Millennials, having grown up during the internet boom, possess a wealth of information at their fingertips. This generation is exceptionally well-informed, and if they invest hours researching a pair of shoes, imagine the effort they’ll dedicate to purchasing a home.
Given this mindset, it’s wise to cater to this generation when making any home upgrades for selling. Consider incorporating “smart” features like digital thermostats, home automation elements, and surveillance cameras. Ensure all necessary repairs are addressed before listing your home. If your budget allows, contemplate enhancing your kitchen and bathrooms.
Moreover, as this demographic is tech-savvy, it’s crucial that your Realtor provides a comprehensive listing for your home, accompanied by numerous high-quality photos, to capture their attention online.
Other Tips on How to Appeal to the Millennials Who are Looking to Buy a Home
Let’s delve into additional strategies to appeal to millennials when selling your home…
1.) Opt for an Open Floor Plan
Research indicates that Generation Y appreciates spacious layouts with fewer walls and distinct rooms. They prefer living spaces that are conducive to entertaining and versatile, as opposed to being enclosed and formal. While knocking down walls may not always be feasible, consider rearranging your furnishings to create the illusion of a larger and more functional space.
2.) Embrace Modern Style and Charm
Many millennials are drawn to clean lines, absence of carpet, sleek designs, and neutral-colored walls with occasional pops of color. Stainless steel appliances and granite countertops are often sought after in the kitchen. If your home features brass-looking light fixtures, consider replacing them. Decluttering and minimizing decor are crucial when preparing your home for the market – a less-is-more approach is generally advisable.
3.) Prioritize Walkability
Even the oldest millennials are relatively young, and a significant number of them appreciate living in proximity to entertainment, restaurants, shops, and parks. While you can’t relocate your home for a better walkability score, if your property boasts good walkability, emphasize this feature to attract millennial buyers. Check your walk score and highlight it in your listing.
4.) Embrace Sustainability
This demographic places a high value on eco-conscious living compared to previous generations. If your home was constructed with environmentally friendly materials and incorporates energy-efficient technology, it can be a significant selling point for millennials.
5.) Recognize the Limitations
While it may not be possible to implement every suggestion, it’s essential to be aware of the preferences of this influential buying group. Tailoring your home to align with some of these features can enhance its appeal to potential millennial buyers.
Explore the insights provided by the National Association of Realtors through their 2017 Home Buyer and Seller Generation Trend Report, focusing on millennials and their interactions with the real estate market.
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Characteristics of the Millennial Home Buyer
- 66% of all first-time home buyers were millennials.
- At 34%, millennials are the largest generational group of home buyers in the country and have been for the last 4 years.
- 55% are interested in investing in real estate.
- 66% of this group were also first-time home buyers.
- An interesting trend is that they are evolving in their style of desired home and moving towards a more traditional home (for instance, a single family home in the suburbs).
- 66% of Generation Y’ers are married and nearly half have children under the age of 18 living with them.
- 13% were unmarried couples.
- The median age is 31.
- The median size of a home purchased was 1,800 square feet.
- The median home was built in 1984.
- Millennials choose to look for their home online (no surprise there).
- The typical time the millennial searched for a home was 10 weeks.
- This group was more likely to purchase a foreclosure.
- 92% of this group of buyers chose to use a Realtor with their purchase.
- 98% financed their home.
- The median household income was $82,000.
- 75% used money from their savings for their down payment.
- 46% of millennials had student debt with a median amount of $25,000.
- 56% utilized a conventional loan versus an FHA or VA loan.
- 85% say that purchasing a home was a good investment.
Characteristics of the Millennial Home Seller
- Millennials who were married made up 86% of home sellers last year.
- They stayed in their homes for an average of 6 years before selling.
- Gen Y’ers homes were on the market for a median time of 3 weeks before going under contract.
- They are more likely to offer incentives to sell their home.
- Millennials sold their home for a median amount of $20,100 more than they bought it for.
- 55% used the same real estate agent to buy and sell their home.
Millennials Are Changing the Real Estate Industry
Introducing 75 million homebuyers annually into the real estate market, coupled with the infusion of technology and evolution, marks a transformative event for the industry. This phenomenon, evident in the last generation, is not inherently negative. However, those who opt not to evolve with societal changes are at risk of being left behind.
- More than any other generational group, millennials consider home ownership as the American Dream.
- Most expect to buy a home in the next 3 to 5 years.
- 99% searched online for their home.
- 58% found their home on a smart phone or other mobile device.
- They demand professional online pictures of the home. 76% drove by a home based on an online listings. 64% viewed the home in person after seeing an online ad.
- 92% purchased their home through a Realtor
- 48% buy new construction homes to avoid having to do repairs.
- They are least likely to identify their home as permanent and sell on average in 6 years. Millennials see their home as a “stepping stone” to the next one.
- Most prefer a large kitchen and open space for entertaining.
- 47% say they want energy efficient upgrades
- 75% say they want brand new appliances
- Most of Gen Y want a home office for either working at home or bringing work home.
- Bad cell reception or internet providers could be “dealbreakers”.
- 43% of the country who use smart home products are millennials.
- 65% say that convenience in getting to and from work is the most important factor in choosing a neighborhood.
While millennial buyers may have arrived a bit later, they are now here and poised to dominate the real estate industry for the foreseeable future. Is your home ready for the millennial market? And for all the Realtors out there, are you tech-savvy? It’s time to get on board!
