The Face of Real Estate Today
The Millennials are today’s new generation. As you can imagine this new generation approaches real estate differently than the generations before them. So what makes the Millennials who they are? Figuring out what makes them tick helps us forecast the direction real estate is going. For example what are Millennials looking for in home design and layout? These answers are a key for maximum return on investment. Here are some things I learned during a recent class on the topic.
Who are the Millennials?
There are a few different definitions as to when the Millennials were born. For our purposes this generation covers anyone born from the 1980’s through the 1990’s.
What are some Characteristics of the Millennials?
Millennials are for the most part inextricably connected to their mobile devices. Mobile phones and tablets are primary means of communication. Most check their social media accounts first thing before breakfast and the last thing before sleeping. And Facebook is what their grandmothers use.
Millennials were raised by parents who celebrated every achievement and gave frequent positive reinforcement. So many feel entitled. As children they lacked spontaneous playtime. As adults they take on too much in an effort to be successful. They feel pressured to be high achievers and think they need to multitask to get everything done.
What Does All of this Mean?
It’s obvious that traditional real estate is changing. The Millennials are looking to the Internet first when starting their home search. See the chart below for a comparison. The traditional real estate office with the pictures of current listings taped to the windows (still found in some smaller towns) is outdated for most prospective buyers. They want to be able to use an app to get all the details of the home right on their mobile phone. They still prefer to ask for a referral from a friend or co worker when looking for an agent.
Also, the homes that they are looking for are different. Millennials are looking for homes with open layouts and outdoor living spaces for entertaining. But they also may like recycled glass countertops and bamboo flooring because they’re concerned about the environment. They are more concerned with practicality than style. Community is important with nearby shopping and dining. They prefer a short commute to work.
Statistically the Millennials constitute the largest pool of home buyers. However, credit is still tight. They may delay buying their first home. Millennials are more likely to finance and generally put less money down. Student loans mean more than half of the Millennials had difficulty saving for a down payment.
How the Real Estate Industry is Adapting
Many real estate agents are from an older generation. They may not be as familiar with using the Internet and social media. However enterprising agents will find ways to set themselves apart and capture the Millennial market!
Diane and William Kradel