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Everything You Need to Know About Millennials Buying Homes in 2020

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Everything You Need to Know About Millennials Buying Homes in 2020


Whether we can believe it or not millennials are going to be one of the top age brackets for buying homes in America in 2020. 

So what exactly are they looking for when it comes to the process of buying homes? They have different requirements and needs in comparison to baby boomers and generation X.

Millennials are now actively seeking affordable homes and houses in their area. Or, they are looking to move to an environment where their income fits their interests and price range. 

So how does the real estate market and real estate agents respond to this? They need to ensure that Millennials are being facilitated in terms of their ideal homes. And also where they can see themselves settling down.

Read on to find out everything you need to know about millennials buying homes.

Millennials and Buying Homes: The Trends

Millennials who were once considered financially unable or not focused on buying homes now are making up over 50% of the mortgage originations. This is in comparison to generation X at 32% and boomers at 17%.

Millennials that have been living in more expensive city-based locations that are close to culture, bars, and restaurants will be looking to move to cheaper and more affordable mid-sized cities such as Tuscon, and Columbia.  

Some will be looking at more suburban locations and rural areas. This is where they will be able to get a lot more space and land for their money.

This is even more critical if they are at the upper end of the millennial age bracket and have settled down and started a family. 

Millennials are looking at leaving the instability of their previous city existence and want to get themselves on the property ladder.

4.8 million millennials will be turning 30 in the USA this year. This means they are probably in their first, second, or even third job. They will have acquired a level of financial security and savings and will want to set up in a more comfortable setting.

Baby boomers and generation X are much happier in their current positions in terms of the housing marketing. When asked only 17% of boomers said they're dissatisfied with their home. 

The reality is that a lot of generation X and baby boomers will be settled and satisfied in the current property they are in. 

Millennials and Affordability

This is one of the key requirements that Millennials will look for when buying a home. The trend of baby boomers being able to buy a large first house doesn't necessarily apply to millennials.

This is due to millennials having also to pay off considerable student loan debt. And also trying to save and live an expensive lifestyle in expensive cities.

It has meant that millennials have delayed the most common traits of previous generations. This includes buying houses and getting married because they're priced out of it.

However, as millennials reach an older age bracket of around 30, they are able to start focusing on saving to put a deposit on a house. 

These houses are less of a status symbol, something that was important to previous generations. Millennials are choosing smaller houses that are affordable for their lifestyle and convenient for their needs. 

Low Maintainance Homes

Millennials want homes that are low maintenance and easy to keep clean. They want a manageable square foot space, with open plan rooms and easy to use, high-end appliances. 

Millennials are busy in their careers and want to make the most of their downtime. They are shying away from homes that require a lot of upkeep and hard graft on their part.

The reality is that they simply don't have the time to spend hours cleaning or sorting bits out.

There are millennials that choose to buy fixer-upper homes for a better price in a good location. However, there is a tendency for millennials to favor new builds or recently renovated properties that need little work to be done to them.

Again this is because of time limitations. Things such as newly renovated kitchens and bathrooms with integrated appliances are seen as highly desirable for millennials when they are choosing homes.

3D Virtual Homes and Tours

In 2020 with Coronavirus, the need for things to be fully functional online has never been greater. This can also be applied to the housing market and finding homes. 

With 3D virtual home tours, users are able to take tours of potential homes without even leaving their current property.

If a potential home buyer has virtual reality glasses they are able to link that up to their headset and have a completely immersive tour in the comfort of their own home.

This is incredibly beneficial for millennials. Because they're so short on time. Viewings can also have greater numbers without needing people to physically visit a property.

Millennials are also heavily reliant on technology and the ease that it brings to their lives as a whole.

A real estate company or agent that has these online options available are going to be seen by millennials as more attractive than those that don't facilitate these kinds of house viewings. 

Sustainable and Ecological Designs

Although millennials are concerned with the price tags of houses, they are much more environmentally conscious than previous generations.

They are much more likely to want to buy houses that have been built in an ecologically-minded way. Even if that means they are paying a little more for it.

Things such as building materials that are made from recyclable materials, materials that have been locally produced, and materials that produce less harmful waste for the environment are all points millennials will be looking for.

This also extends to how energy is consumed and produced in the household. They may want to see properties with solar panels, log burners, and a more ecological way of consuming energy.

Location and Distance of Schools

Millennials are wanting to live in safe and affordable neighborhoods that are in good proximity to decent public or private schools.

This is especially the case if they have already started a family or plan to in the next couple of years. They want the option of being able to send their children to a range of good schools. This is true whether they are privately educating them or using public education.

They want their location to be within walking distance of local shops, community stores, coffee houses, and exercise classes such as yoga and interval training classes.

They want to be able to tap into a strong sense of community in their location. This is whether they have just moved to the area or whether they already have family and friends there.

Scandinavian and Minimalist Design

Scandinavian and minimalist design is all the rage in terms of interior design and the way that people want their houses to look. 

Millennials want interiors that are uncluttered and unfussy with plenty of blank space to make their rooms look more open and bigger.

The design tends to be neutral and minimal with warm hygge hanging lighting and plenty of indoor green plants.

Hygge, which originates from Denmark and Norway, is popular across the world in terms of interiors.

It is perfect for millennials as the focus is on minimalism but also doing the most with the space available. This can be achieved with a couple of good quality lights and comfortable seats and throws.

The overall look can be very effective but doesn't need a whole heap of exertion and decoration. It is also a blank canvas for people to add to if they want.

Internet and Smart Houses

The internet is an integral part of any millennial's requirements when looking for a home. Especially now as more people are working from home than ever before.

Millennials want a location that has reliable download speeds and upload speeds and that can be connected to a range of internet options.

This is also true in terms of smart homes. They want the option to be available to connect their houses to things such as door locking technology, monitoring systems, or smart doorbells.

They are the first generation that grew up with technology as a focal point of their development. They want to embrace technology in every aspect of their lives, including their homes.

Millennials Buying Homes: Where Can I Find Out More?

We hope that you have enjoyed this article on everything to consider about millennials buying homes.

It's undeniable that millennials and house buying is now a booming market. This will only continue to increase as they rise through their careers and look to make that transition from renting to owning their own home.

If you have any further questions or queries about millennials and home buying or want more information about 3D virtual tours, why not contact us directly?