Just what do millennials want in a home anyway? For the future of the construction industry at large, this represents the “million-dollar question” and the future of the industry. Representing the generation coming of age around the year 2000’s, many of these young adults are still living at home at later ages than previous generations, but many also rent.
Few in this age bracket want to live like this forever.
In fact, a survey found that over nine of ten millennials who do not already own a home want to eventually do so, which makes people wonder what they want in homes, given that they are going to embody a huge market of home buyers in the coming years. Sellers and builders alike need to have what these young people expect in a home, so today I wanted to discuss what drives the house purchasing decisions of this large and unique generation.
How Big is the Market?
The sheer size of the millennial demographic is mind boggling. The United States still has over seventy-five million baby boomers living in this economy, but there are over eighty-seven million Millennials, so even after baby boomers all move into retirement homes or pass away, there would not be enough homes on the market to satiate all the demand. That of course will not be the case anyway as boomers are living longer and staying in their own homes. So, multitudes of new construction are going to be necessary? But, what to build?
There are things that Millennials are looking for specifically in their homes. Affordability is one aspect, given that younger workers have limited incomes and do not make a lot of money, so they are not necessarily looking for huge homes with tons of space, although they do like open concept floor plans. So, homes with lower prices move faster on the market, and more pricey homes take correspondingly longer to sell, except for the ultra-premium property market of home values more than thirty million dollars. However, few members of this generation qualify for that.
Location X 3
It has long been a cliché in real estate that it is about location, location, location. This holds very true for Millennials. It is not just important in terms of the specific neighborhoods that homes are in, but what they are around. Millennial renters have already proven preferences for being near all that they need in a normal week, which includes places of employment, coffee shops and beverage bars, and transportation options.
Millennial families or couples who have children or who might have children in the future consider the quality of the local school district to be a huge factor in choosing a home to buy. Over half of millennial home buyers say this is a deal breaker, as compared to less than a third of older parents.
High Tech Homes
One thing specific to Millennials is their willingness to eschew certain comforts of homes in exchange for having a higher level of technological ability within the residence. There is an expectation that their home is all interconnected so that they can use their tablet or smartphone to control the security system and temperature. Wireless or cellphone coverage is also very important, as the strength of a carrier signal matters when Millennials shop potential properties.Tags: home construction, millennials, what do millennials want in a home