What is the Big Deal About Millennial Home Buyers?
Millennials. It's a buzzword you hear a lot about these days. But what do they have to do with today's real estate market? Good question!
First off, do you even know what a Millennial is by definition? It's actually not that easy to define since there are differing views on exactly what date range applies to this generation. According to the Pew Research Center, Millennials were born between 1981 and 1996. So let's go with that! You might also want to know that Generation Y is another term coined for Millennials, so they're basically the same thing.
Millennials are your primary potential buyers, so you should know what they're looking for when it comes to buying a home. Here a few facts to get you started.
Most First-Time Home Buyers Are Millennials
Did you know that younger Millennials are buying their first home at an earlier age and that many older Millennials have already moved on to the purchase of their second? So are they a pretty big deal in the real estate market? Yes, yes they are.
According to the article on Inc.com entitled How Millennials Are Changing the Housing Market, this generation is better informed about their housing options than any other generation before them. Of all first-time home buyers, Millennials make up 66%, and they are 34% of home buyers overall. Over 66% plan to purchase a new home within the next 5 years. That's a huge generational shift in real estate.
Millennials Are Very Informed About Their Buying Options
Millennials are part of the research-driven culture that allows you to find everything you need to know on the internet. They know what they want and they also want everything to be just right. Though a majority of their research is already done on their own, they do value the expertise of a realtor and are inclined to use one in the home-buying process.More than three-quarters of Millennial home buyers drove by a home because of photos and listings they found online, and over 60% did walkthroughs because of these listings. Getting the information in front of them is key, so make sure you as the seller highlight relevant features and put your info online if you're hoping to snag serious interest from this group of home buyers.
Millennials Know What They Want
Millennials still consider buying and owning a home as part of the American dream, but they aren't really interested in fixing it up themselves. Instead they prefer homes that are already updated and move-in ready. Homes with modernized kitchens and bathrooms, green living features already installed (like solar panels, a home office, open floor plan)—combined with a good location plus good internet and cell service are on the wish list for most Millennial homebuyers.
Hera are few more facts according to Inc.com:
- Almost half of Millennials would rather buy a brand new house in order to avoid any maintenance issues that might occur early on.
- Only 11% of Millennials consider a home to be permanent anyway. Eventually, Millennials plan to sell their starter home as 68% view it as a stepping stone to the home they really want and making improvements is not part of that plan.
- The average homeowner keeps their home for ten years, while the average Millennial only keeps their home for six years.
New homes and already fixed up homes are the ones that are going to be moving on the real estate market, thanks to the buying power that Millennials hold.
Millennials Hold Major Buying Power
As just mentioned, Millennials hold a lot of buying power in today's real estate market. If you aren't catering to this generation then it goes without saying that you're probably missing out on a lot of potential buyers.
So what can you do to encourage the interest of Millennial buyers? Here are a few helpful selling and listing tips.
- Make all necessary repairs and upgrades before listing your house.
- Consider updating kitchens and baths (these have always sold homes, but now they are more important than ever).
- Do an energy efficiency audit and make any green or environmental upgrades anywhere you can, including solar panels.
- Upgrade any old appliances before putting your home on the market or taking photos for your listing.
- Install smart home features like programmable thermostats and other technologically-savvy systems.
Are you interested in learning more about your biggest group of potential buyers? Check out this infographic from Nationwide Mortgage on Millennial homebuyer facts for more insight.