With every new generation comes changes to the way the housing market operates and functions. For several reasons, millennials are changing the way the housing market works. Millennials tend to have less disposable income, be more focused on technology, and tend to value the amenities of larger cities and their suburbs more than the space and privacy of rural areas.
Millennials like to have access to their jobs
Unlike previous generations, millennials are willing to make sacrifices to avoid long commutes. Sixty-five percent of millennials have indicated that the most important factor in choosing a neighborhood is the proximity to their job. Many millennials forgo commuting entirely – this generation is much more likely to telecommute to work and needs to have access to good broadband internet and a suitable workspace within their homes.
Millennials do not have spare cash or time for renovations
Millennials work harder for lower wages than many generations that have preceded them. Because of this, it is difficult for them to save the money to afford the down payment on a home. Once they have succeeded in making those savings, they are unlikely to have the money to considerably renovate or modify the home they purchase. This puts the onus on the seller to ensure that the space is already in great condition, with up-to-date appliances and modern features such as programmable thermostats and energy-efficient windows.
Millennials have greater access to technology
The vast majority of millennials will find property for sale via the internet as opposed to driving around or attending open houses. This means that it is critical for anybody selling a home to make sure they have a strong web presence and a good online marketing strategy to make homes appealing to millennials. Some millennials will also have their parents involved in the home-buying process once it comes time to look at houses and make offers. In many cases, the parents are fronting some or all of the down payment to help their children enter the homeownership ladder. Savvy realtors need to be aware of this dynamic and cater to both parties – if the millennial or his/her parents are not on board with a particular home, this can jeopardize the possibility of a sale.