The Rise of the Millennial Homebuyer

The Rise of the Millennial Homebuyer

Ignoring Millennials—or not understanding how to sell to them—can have an impact on your bottom line. And not in a good way.

First, a quick reminder of who the Millennials are:

? They’re 83 million strong.

? They’ve overtaken the Baby Boomers as the largest living generation.

? They were born between 1982 and 2000.

? They spend 600 billion per year.

? Their social interactions are important – online and IRL (In Real Life).

? They’ve grown up with technology and it permeates their lives.

? They expect flawless user experiences in all tech interactions.

? 85% of them name one of their parents as their best friend.

? More than one-third say they influence their parents’ purchases, trips and restaurant choices.

The powerful financial force of today’s Millennials can’t be denied, especially for those of us in the real estate space. Although some people perceive that Millennials aren’t ready to make big purchases, buy a home or settle into a community, studies debunk that myth.

According to the National Association of REALTORS? (NAR), Millennials were the largest group of homebuyers (34%) for the fourth year in a row, with 66% of them being first-time homebuyers. Baby Boomers accounted for just 30% of home purchases that same year. In addition, 90% of Millennials hope to eventually buy their own home, the National Association of Home Builders (NAHB) says.

Although there are regional variances, general trends show that Millennials are looking for four-bedroom homes, while Boomers are often downsizing. Millennials are also fueling the rise of mixed-use communities where they can live, work, eat and play. These urban areas create a diverse social network and fosters the healthier lifestyle that can be achieved when walking more than driving.

An open kitchen, big rooms and a connected home are high priorities for Millennial buyers. Today’s technology is a far cry from what was available and affordable just five to seven years ago. No longer a novelty, today’s homes are managed with tech that remotely controls lighting, door locks, security systems, doorbells with video notifications, even refrigerators with built-in screens. Ubiquitous smartphone and tablet use means that homeowners are in control of their home anytime, anywhere.

While Millennials are heavy consumers of all things tech, they are thoughtful consumers when it comes to our natural resources. An environmentally-friendly home in a community with strong support of recycling, water conservation and related causes are important to them. That being said, cost can have an impact on the affordability of homes that incorporate a significant number of environmental features.

Take time to get to know your neighborhood Millennials and seek out their insights. You’ll be glad you did!