Did you know that Millennials have become the largest homebuying demographic? People in this demographic make up almost 40 percent of homebuyers.
Millennials have a reputation for altering industries. As the first “digital” generation, they have different values. They prefer different methods of communication.
As a result, they are also changing the face of the real estate industry. If you want to make sure your listings appeal, then you need to look at these Millennial real estate trends.
Millennials Are Looking for Family Homes
The first thing to understand is that a “Millennial” is not someone in their twenties. This is a common mistake to make.
In fact, many Millennials are now in their thirties and forties. While they have been living at home with their parents longer, many are now moving out on their own, and this is especially true as more Millennials are starting families.
That means they are not looking for bachelor apartments or one-bedroom homes. Instead, they are looking at multi-bedroom homes, and many want spaces that have yards or are close to good schools.
First-Time Homebuyers
Another thing to keep in mind is that Millennials are largely first-time homebuyers. This has to do with historic trends that have shaped Millennials’ finances over the last decade or so. They are starting families later, and they have stayed at home with their parents longer.
If they were not at home, then Millennials may have been renting. They tend to rent longer than other demographics, in part due to those historic trends.
As a result, Millennial buyers may need more help navigating the home buying process. Agents who offer more help and personalized experiences will do better with Millennials.
Price-Sensitive Buyers
The next thing to know is that Millennials are price sensitive. There are a few reasons for this.
The first is that many Millennials still have school debt. This has been one factor in people in this demographic staying at home longer. They have not been able to afford to move out.
Millennials may have opted to stay with their parents to save up a larger down payment or pay down their debt somewhat. This is all aimed at helping them manage their mortgage payments. If they have a larger down payment, their mortgage will be smaller.
This is likely a result of Millennials having come of age during the Great Recession in 2008. Some Millennials were just starting out on their careers, while others watched the effects the downturn had on their friends and family.
Millennials are more likely to think about how they can handle their mortgages in the event of a pay cut or job loss. They want to be sure they are not taking on more than they can handle, so they are more likely to pay attention to “great deals.”
That may be one factor driving the real estate market right now. Home sales have rebounded since March, with the market continuing to defy expectations.
This may be the result of Millennials taking advantage of super low mortgage rates. With rates as low as they are, Millennials may be able to afford more house than they thought they could.
A Demographic That Does Their Homework
As noted, Millennials tend to pay attention to factors like neighborhood and proximity to good schools. They are less likely to focus on square footage.
This is partially the result of Millennials being the first digital generation. They grew up alongside the Internet, so their first instinct is to turn to Google or online real estate listings.
In fact, most Millennial buyers start their journey with online research. They will research which schools are good and which ones have less stellar reputations. They will also look at different neighborhoods and what each offers, such as parks or a great restaurant scene.
They will usually zero in on a neighborhood that appeals to them. Then they will look for housing nearby and research average selling prices and more.
This makes them more capable of spotting those “great deals” when they crop up. It also makes them more leery of listings that seem too good to be true.
Millennials Know What They Want
Another outcome of the Millennial tendency to research is that Millennials know what they want. As a result, they are less likely to compromise on factors like neighborhood. They have done the research, and they know where they want to live.
They are more likely to compromise on square footage or price. Yes, they may want to someday own a large house with a yard and a detached two-car garage. Right now, they will take the smaller house that is in their ideal neighborhood at the right price point.
Millennials also are not afraid to move, so they know they can buy this house now and then “upgrade” later.
Millennials Real Estate Trends Favor Historic Details
As a demographic, Millennials have also shown a preference for historic detail in their homes. They tend to favor older styles and are attracted to older homes with more character.
In fact, popular styles with Millennials include:
- Mid-century modern homes
- Pre-war homes
- Mediterranean style homes
Pre-war homes date back to the 1920s and 1930s. They usually include plenty of character, as well as opulent details.
Mid-century modern homes date to the 1950s and 1960s. They tend to be a little more “cookie-cutter” than the pre-war homes. They also tend to have a cleaner look and feel, and they are less fussy than pre-war homes.
Of course, any home can be updated to reflect these style choices. The simple addition of crown molding to a home will go a long way in making it appeal to Millennial buyers.
As much as Millennials love historic detail, though, they also demand modernity. They want recessed lighting and state-of-the-art appliances in their homes. They are also interested in smart home features, such as smart light bulbs and more.
Thoughtful updates and careful staging can make all the difference.
Marketing Millennial Real Estate
Now that you have a good understanding of what Millennials investing in real estate want, your next question is about how to market real estate to Millennials.
As noted, Millennials are the first digital generation. They have adopted the Internet, and they continue to adapt to it as it evolves. They are not digital natives like Gen Z, but they prefer texting versus phone calls and so on.
For that reason, real estate agents must have a digital marketing strategy. Without one, you are unlikely to get your listings in front of the majority of home buyers.
Internet use among Millennials is almost universal. Most check their emails on a day-to-day basis, so you may want to consider an email newsletter to keep everyone up to date.
Millennials are also heavy users of social media. They tend to be most active on Facebook and Instagram, although many use other platforms too.
Your website is also a key marketing tool. An informative website that is up to date with your listings and a great blog can help these savvy researchers.
Using a company like Hommati will give you the tools on how to market to people, especially Millenials. They have a digital marketing strategy that caters towards individuals who use their phones or computers more so than anything else.
Photos, Virtual Tours, and More
It is not enough to simply be online. Millennials also expect real estate agents to take advantage of technological tools. They want high-quality photos and virtual tours.
Virtual open houses and 3D tours have become much more popular this year, and it looks as though they will likely stick around. Millennials find them helpful, as well as more convenient than attending an open house.
Millennials are not afraid of uprooting and moving to take advantage of a job in a new location. As a result, virtual tours can help reach buyers who may be out of town or out of state.
What is more is, a virtual tour and great photos help Millennials conduct their research. They can determine if they are interested in a property by viewing the photos or taking the tour.
Your rule of thumb should be to provide as much information as possible. Millennials are independent researchers. The more information you give them, the easier they can gauge their interest.
This allows truly interested buyers to follow up with you. It also helps you by weeding out people who are less serious about a property. With the help of a company like Hommati, you can have access to these tools to help get your listing noticed by the people who are truly intersted in the house.
Reach Millennials With the Right Platform
Millennial real estate buyers have faced unique circumstances. As a result, they are bringing their own approach to the world of home buying. Agents who stay on top of trends related to this demographic will do better in years to come.
Want to make sure your listings are reaching the right buyers? Get started with a better platform for online listings. The right platform makes it easy to create gorgeous listings and virtual tours that will attract all types of buyers.
Best of all, it can be free to get an account. Sign up today and discover the different the right platform can make for your listings.