Millennials are the largest generation in history and they currently represent the largest share of home buyers in the real estate market. Though they have been in the market for a few years, they remain a puzzle that realtors have struggled to solve.
Who is the Millennial Home Buyer?
Though they may be difficult to understand, realtors must find a way to get to know millennials and target them for real estate sales. Here are some insights that can help realtors do just that.
They are Older for First-Time Buyers
Millennials aren’t buying their first homes in their early 20s like their parents did. In fact, the average age of the first-time millennial home buyer is 30. Many are delaying the process for a number of reasons that are unique to this generation, such as millennials are marrying and having children later in life; they are living at home longer; and they struggle to find full-time work while saddled with high levels of student debt.
They are Cautious in Their Spending
Millennials entered the workforce during the Great Recession, which had a profound effect on their views on spending priorities and finances. Many struggled to secure jobs and were forced to move back in with their parents. They have struggled to save money and have become very frugal with the money they do have.
They View Home Ownership Differently
Previous generations tend to view homes as status symbols and investments. It’s about putting down roots and living in a beautiful forever home. Millennials take a more functional view of home ownership. It’s a rite of passage, but it isn’t the ultimate goal of independence. Rather than a forever home, most millennials are looking for flexibility in home ownership as they are more likely to change jobs more often than older generations.
They are Tech-Savvy
Millennials are the first generation to grow up on technology. As such, the first place a millennial buyer is going to go look at home listings is the internet. They expect to see pictures and videos of potential properties, as well as the opportunity to take a virtual tour of a home. To catch the attention of a millennial home buyer, realtors must ensure listings are online and up-to-date.
They Shop for Convenience
Millennials place a high importance on convenience when shopping for a home. They look for homes that are closer to work, social areas, and markets so they don’t have to commute as much. Not surprisingly, they tend to prefer urban living to rural living. They also look for the convenience of technology in connected homes. Millennials want to be able to control their homes from an app, so a high level of connectivity is a priority.
Though it may seem daunting to try to target millennials, real estate agents can’t afford not to. They are the largest demographic group in the real estate market and are ready to purchase when they find what they want.